META FINANCIAL GROUP INC, 10-Q filed on 8/8/2017
Quarterly Report
v3.7.0.1
Document and Entity Information - shares
 9 Months Ended
Jun. 30, 2017
Aug. 03, 2017
Document Information [Line Items]    
Entity Registrant Name META FINANCIAL GROUP INC  
Entity Central Index Key 0000907471  
Current Fiscal Year End Date --09-30  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q3  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2017  
Common Class A [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   9,349,989
Nonvoting Common Stock [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   0
v3.7.0.1
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
ASSETS    
Cash and cash equivalents $ 65,630 $ 773,830
Investment securities available for sale 1,141,684 910,309
Mortgage-backed securities available for sale 666,424 558,940
Investment securities held to maturity 464,729 486,095
Mortgage-backed securities held to maturity 117,399 133,758
Loans receivable 1,224,359 925,105
Allowance for loan losses (14,968) (5,635)
Federal Home Loan Bank Stock, at cost 16,323 47,512
Accrued interest receivable 21,831 17,199
Premises, furniture, and equipment, net 20,107 18,626
Bank-owned life insurance 84,035 57,486
Foreclosed real estate and repossessed assets 364 76
Goodwill 98,723 36,928
Intangible assets 64,798 28,921
Prepaid assets 31,265 9,443
Deferred taxes 6,858 0
Payments division accounts receivable 5,858 6,334
Other assets 4,274 1,492
Total assets 4,019,693 4,006,419
LIABILITIES    
Non-interest-bearing checking 2,481,673 2,167,522
Interest-bearing checking 40,928 38,077
Savings deposits 55,292 50,742
Money market deposits 46,709 47,749
Time certificates of deposit 83,760 125,992
Wholesale deposits 444,857 0
Total deposits 3,153,219 2,430,082
Short-term debt 277,166 1,095,118
Long-term debt 92,514 92,460
Accrued interest payable 2,463 875
Deferred taxes 0 4,600
Accrued expenses and other liabilities 64,118 48,309
Total liabilities 3,589,480 3,671,444
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2017 and September 30, 2016, respectively 0 0
Additional paid-in capital 256,088 184,780
Retained earnings 166,634 127,190
Accumulated other comprehensive income 7,397 22,920
Total stockholders’ equity 430,213 334,975
Total liabilities and stockholders’ equity 4,019,693 4,006,419
Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock 94 85
Nonvoting Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.7.0.1
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - $ / shares
Jun. 30, 2017
Sep. 30, 2016
STOCKHOLDERS’ EQUITY    
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 15,000,000 15,000,000
Common stock, shares issued (in shares) 9,349,989 8,523,641
Common stock, shares outstanding (in shares) 9,349,989 8,523,641
Common Stock, Nonvoting [Member]    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 3,000,000 3,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Interest and dividend income:        
Loans receivable, including fees $ 14,089 $ 9,280 $ 37,540 $ 26,147
Mortgage-backed securities 4,544 3,777 12,345 12,258
Other investments 10,228 7,706 29,269 21,262
Total interest and dividend income 28,861 20,763 79,154 59,667
Interest expense:        
Deposits 1,039 136 4,161 434
FHLB advances and other borrowings 2,879 708 6,251 1,821
Total interest expense 3,918 844 10,412 2,255
Net interest income 24,943 19,919 68,742 57,412
Provision for loan losses 1,240 2,098 10,732 4,057 [1]
Net interest income after provision for loan losses 23,703 17,821 58,010 53,355
Non-interest income:        
Refund transfer product fees 5,785 3,424 38,448 23,062
Tax advance product fees (108) 7 31,460 1,575
Card fees 23,052 18,779 68,013 52,614
Loan fees 982 1,084 3,034 2,551
Bank-owned life insurance 656 454 1,548 1,208
Deposit fees 190 144 508 457
Gain (loss) on sale of securities available for sale, net (includes $47 and ($102) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended June 30, 2017 and 2016, respectively and ($1,331) and ($52) for the nine months ended June 30, 2017 and 2016, respectively) 47 (102) (1,331) (52) [1]
Gain on foreclosed real estate 0 0 7 0 [1]
Other income 216 17 652 127
Total non-interest income 30,820 23,807 142,339 81,542
Non-interest expense:        
Compensation and benefits 22,193 15,375 66,809 47,140
Refund transfer product expense 1,623 359 11,852 8,615
Tax advance product expense 72 0 3,239 0
Card processing 5,755 5,607 18,377 16,858
Occupancy and equipment 4,034 3,413 12,202 10,451
Legal and consulting 1,375 1,221 5,603 3,211
Marketing 381 490 1,461 1,531
Data processing 344 324 1,099 1,022
Amortization expense 1,887 1,216 10,494 3,644
Other expense 4,555 3,622 14,782 10,953
Total non-interest expense 42,219 31,627 145,918 103,425
Income before income tax expense 12,304 10,001 54,431 31,472
Income tax expense (includes $18 and ($37) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the three months ended June 30, 2017 and 2016, respectively and ($499) and ($19) for the nine months ended June 30, 2017 and 2016, respectively) 2,517 1,128 11,258 4,258
Net income $ 9,787 $ 8,873 $ 43,173 $ 27,214 [1]
Earnings per common share        
Basic (in dollars per share) $ 1.05 $ 1.04 $ 4.69 $ 3.23
Diluted (in dollars per share) $ 1.04 $ 1.04 $ 4.66 $ 3.21
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Non-interest income:        
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ 47 $ (102) $ (1,331) $ (52)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) $ 18 $ (37) $ (499) $ (19)
v3.7.0.1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Statement of Comprehensive Income [Abstract]        
Net income $ 9,787 $ 8,873 $ 43,173 $ 27,214 [1]
Other comprehensive income (loss):        
Change in net unrealized gain (loss) on securities 11,902 17,561 (25,398) 36,397
Losses (gains) realized in net income (47) 102 1,331 52
Total available for sale adjustment 11,855 17,663 (24,067) 36,449
LESS: Deferred income tax effect 4,472 6,399 (8,544) 13,312
Total other comprehensive income (loss) 7,383 11,264 (15,523) 23,137
Total comprehensive income $ 17,170 $ 20,137 $ 27,650 $ 50,351
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Balance at Sep. 30, 2015 $ 271,335 $ 82 $ 170,749 $ 98,359 [1] $ 2,455 $ (310)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock (3,281)     (3,281) [1]    
Issuance of common shares from the sales of equity securities (in shares)   2        
Issuance of common shares from the sales of equity securities 11,501   11,499      
Issuance of common shares due to issuance of stock options, restricted stock and ESOP 2,085 $ 1 1,774     310
Stock compensation 678   678      
Net change in unrealized gains (losses) on securities, net of income taxes 23,137       23,137  
Net income 27,214 [2]     27,214 [1]    
Balance at Jun. 30, 2016 332,669 85 184,700 122,292 [1] 25,592 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Adoption of Accounting Standards Update 2016-09 0   104 (104)    
Balance at Sep. 30, 2016 334,975 85 184,780 127,190 [1] 22,920 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock (3,625)     (3,625) [1]    
Issuance of common shares due to issuance of stock options, restricted stock and ESOP 529   529      
Stock Issued During Period, Value, Restricted Stock Award, Gross 4 $ 4        
Stock Issued During Period, Value, Employee Stock Ownership Plan 1,174   1,174      
Stock compensation 8,405   8,405      
Issuance of common shares due to acquisition (in shares)   5        
Issuance of common shares due to acquisition 37,296   37,291      
Contingent consideration equity earnout due to acquisition 24,142   24,142      
Adjustments Related to Tax Withholding for Share-based Compensation (337)   (337)      
Net change in unrealized gains (losses) on securities, net of income taxes (15,523)       (15,523)  
Net income 43,173     43,173 [1]    
Balance at Jun. 30, 2017 $ 430,213 $ 94 $ 256,088 $ 166,634 [1] $ 7,397 $ 0
[1] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjFkZWE4OGJmMTIwYjQ0MmNiMTg1YzQzM2UzYmQ0YWY3fFRleHRTZWxlY3Rpb246NEMzNEVCRTRDNDkxRjlCRjAwMkE5QTI2M0UxMTEwMzYM}
[2] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]    
Cash dividends declared on common stock (in dollars per share) $ 0.39 $ 0.39
v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
 [1]
Cash flows from operating activities:    
Net income $ 43,173 $ 27,214
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, amortization and accretion, net 35,002 26,646
Stock-based compensation expense 8,405 678
Provision for loan losses 10,732 4,057
(Recovery) provision for deferred taxes (2,914) 348
(Gain) loss on other assets (21) 23
Gain on foreclosed real estate (7) 0
Loss on sale of securities available for sale, net 1,331 52
Capital lease obligations interest expense (92) (95)
Net change in accrued interest receivable (4,632) (4,559)
Originations of loans held for sale (685,934) 0
Proceeds from sales of loans held for sale 685,934 0
Change in bank-owned life insurance value (1,549) (1,208)
Net change in other assets (24,179) (3,745)
Net change in accrued interest payable 1,588 65
Excess contingent consideration paid (248) 0
Net change in accrued expenses and other liabilities 16,172 627
Net cash provided by operating activities 82,761 50,103
Cash flows from investing activities:    
Purchase of securities available-for-sale (782,169) (474,281)
Proceeds from sales of securities available-for-sale 317,099 224,564
Proceeds from maturities and principal repayments of securities available-for-sale 86,516 83,487
Purchase of securities held to maturity (932) (252,108)
Proceeds from maturities and principal repayments of securities held to maturity 34,242 11,242
Purchase of bank owned life insurance (25,000) (10,000)
Purchase of student loan portfolio (136,172) 0
Proceeds from loan sales 2,141 88
Net change in loans receivable (168,537) (152,396)
Proceeds from sales of foreclosed real estate or other assets 97 0
Net cash paid for acquisitions (29,425) 0
Federal Home Loan Bank stock purchases (468,291) (615,701)
Federal Home Loan Bank stock redemptions 499,480 614,800
Proceeds from the sale of premises and equipment 57 51
Purchase of premises and equipment (5,699) (5,536)
Net cash used in investing activities (676,593) (575,790)
Cash flows from financing activities:    
Net change in checking, savings, and money market deposits 320,512 520,257
Net change in time deposits (42,232) 9,165
Net change in wholesale deposits 444,857 0
Net change in FHLB and other borrowings (100,000) 100,000
Net change in federal funds (717,000) (103,000)
Net change in securities sold under agreements to repurchase (938) (1,773)
Principal payments on capital lease obligations (59) (95)
Cash dividends paid (3,625) (3,281)
Purchase of shares by ESOP 1,174 0
Issuance of restricted stock 4 0
Proceeds from exercise of stock options 529 13,586
Shares repurchased for tax withholdings on stock compensation (337) 0
Contingent consideration - cash paid (17,253) 0
Net cash (used in) provided by financing activities (114,368) 534,859
Net change in cash and cash equivalents (708,200) 9,172
Cash and cash equivalents at beginning of period 773,830 27,658
Cash and cash equivalents at end of period 65,630 36,830
Cash paid during the period for:    
Interest 8,824 2,190
Income taxes 19,947 5,204
Franchise taxes 156 74
Other taxes 289 78
Supplemental schedule of non-cash investing activities:    
Loans transferred to foreclosed real estate and repossessed assets (378) 0
Stock issued for acquisitions (37,296) 0
Contingent consideration - equity (24,142) 0
Purchase of held-to-maturity securities accrued, not paid $ 0 $ 20,884
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
BASIS OF PRESENTATION
 9 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION
BASIS OF PRESENTATION

The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2016 included in Meta Financial Group, Inc.’s (“Meta Financial” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 14, 2016.  Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X.  Such information reflects all adjustments (consisting of normal recurring adjustments), that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and nine month periods ended June 30, 2017 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2017.

The Company reclassified insignificant electronic return originator ("ERO") and taxpayer advance fee income and related expenses during the first quarter of fiscal year 2017 from loan fees and other income to tax product fees and other expenses to tax product expense. Prior period amounts have also been reclassified.

As of March 31, 2017, certain insignificant adjustments to previously reported Earnings Per Share ("EPS") were made to correctly reflect the effect of participating securities on basic and diluted EPS calculations in accordance with ASC 260. These changes were immaterial to the overall EPS calculation.

The Company has early adopted Accounting Standards Update ("ASU") 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The requirement to report the excess tax benefit related to settlements of share-based payment awards in earnings as an increase or (decrease) to income tax expense has been applied utilizing the prospective method and resulted in a tax benefit of $0.5 million for the quarter ended June 30, 2017. In addition, the Company recognized $0.3 million in compensation expense for the quarter ended June 30, 2017 related to the reversal of forfeitures in accordance with the adoption. While the adoption of ASU 2016-09 requires retrospective application to all fiscal year periods presented, the Company elected to not recast previously reported financial statements as the impact was considered insignificant. However, the Company reclassified stock compensation from financing to operating activities on the Consolidated Statement of Cash Flows as of June 30, 2017 and June 30, 2016.
v3.7.0.1
ACQUISITIONS
 9 Months Ended
Jun. 30, 2017
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS

EPS Financial
On November 1, 2016, the Company, through its wholly-owned subsidiary, MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC ("EPS") from privately-held Drake Enterprises, Ltd. ("Drake"). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 ERO's nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services.
Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the November 1, 2016 tangible book value of EPS, included the payment of $21.9 million in cash, after adjustments, and the issuance of 369,179 shares of Meta Financial common stock. The Company acquired assets with approximate fair values of $17.9 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and $0.1 million of other assets, resulting in $30.4 million of goodwill.
The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated statement of financial condition as of November 1, 2016.
 
As of November 1, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
   Cash
$
21,877

   Stock issued
26,507

      Total consideration paid
48,384

 
 
Fair value of assets acquired
 
   Intangible assets
17,930

   Other assets
79

      Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375


The Company has included the financial results of EPS in its consolidated financial statements subsequent to the acquisition date. The EPS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities.
The Company recognized goodwill of $30.4 million as of November 1, 2016, which was calculated as the excess of both the consideration exchanged and the liabilities assumed, which were negligible, as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 12 to the Condensed Consolidated Financial Statements for further information on goodwill.
The Company recognized $0.5 million of pre-tax transaction-related expenses during the first nine months of fiscal year 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting.
SCS
On December 14, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and specified liabilities of Specialty Consumer Services LP ("SCS"). The assets acquired by MetaBank in the SCS acquisition include the SCS trade name, propriety underwriting model and loan management system and other assets. SCS primarily provides consumer tax advance and other consumer credit services through its loan management services and other financial products.
Under the terms of the purchase agreement, the aggregate purchase price paid at closing, which was based upon the December 14, 2016 tangible book value of SCS, was approximately $7.5 million in cash and the issuance of 113,328 shares of Meta Financial common stock. In addition, contingent cash consideration of up to $17.3 million (estimated fair value), payable in cash, and equity contingent consideration of up to 264,431 shares of Meta Financial common stock, will be paid if certain performance benchmarks are achieved subsequent to closing (described more fully below). The Company acquired assets with approximate fair values of $28.3 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and negligible other assets, resulting in goodwill of $31.4 million. All amounts are at estimated fair market values.
Subject to the equity earn-out terms of the purchase agreement, SCS will be eligible to receive up to an aggregate of 264,431 shares of Meta Financial common stock within 20 days after the applicable equity earn-out statement is deemed final if certain targets are achieved. The equity earn-out measurements are as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit meets or exceeds the statement amount, MetaBank will deliver to SCS a stated number of shares of Meta common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts is greater than or equal to the agreed upon volume amount, then MetaBank will deliver to SCS a stated number of shares of Meta common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract is in effect and each such agreement is not amended or modified as of such time (except as approved in writing by the President of MetaBank, in his or her sole discretion), then MetaBank will deliver to SCS a stated number of shares of Meta common stock. None of the equity earn-out payments are contingent on the achievement of any of the other equity earn-out targets.
Subject to the cash earn-out terms of the purchase agreement, MetaBank agreed to pay to SCS an amount equal to 100% of the 2017 measured business gross profit up to a maximum of $17.5 million within 20 days after the date on which each determination of the cash earn-out payment is deemed final. During the third quarter of fiscal 2017, MetaBank paid out the $17.5 million of contingent cash consideration to SCS based upon the measured business gross profit.
The Company has included the financial results of SCS in its consolidated financial statements subsequent to the acquisition date. The fair value of the liability for the cash contingent consideration was approximately $17.3 million and was included in other liabilities in the Company's consolidated statement of financial condition. The fair value of the equity contingent consideration was approximately $24.1 million at closing and was included in additional paid-in capital in the Company's consolidated statement of financial condition. The respective fair values of the liability and equity were estimated using an option-based income valuation method with significant inputs that were not observable in the market and thus represent a Level 3 fair value measurement as defined in the FASB's Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of the expected future cash flows related to our acquisition of SCS during the earn-out period.
The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the consolidated statement of financial condition as of December 14, 2016.
 
As of December 14, 2016
 
(Dollars in Thousands)
Fair value of transaction consideration
 
   Cash
7,548

   Stock issued
10,789

      Paid consideration
18,337

   Contingent consideration - cash
17,252

   Contingent consideration - equity
24,142

      Contingent consideration payable
41,394

         Total consideration paid
59,731

 
 
Fair value of assets acquired
 
   Intangible assets
28,310

   Other assets
2

      Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
31,419


The SCS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. Upon receipt of final fair value estimates on certain assets, liabilities, and contingent considerations, which must be within one year of the acquisition date, the Company made final adjustments to the purchase price allocation and retrospectively adjusted the recorded goodwill. The Company recorded a contingent liability in the amount of $17.3 million to reflect the fair market value of the potential cash earn-out payment.
The Company recognized goodwill of $31.4 million as of December 14, 2016, which was calculated as the excess of both the adjusted consideration exchanged and the liabilities recorded as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 12 to the Condensed Consolidated Financial Statements for further information on goodwill.
The Company recognized $0.8 million of pre-tax transaction related expenses during the first nine months of fiscal year 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting.
v3.7.0.1
CREDIT DISCLOSURES
 9 Months Ended
Jun. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
CREDIT DISCLOSURES
CREDIT DISCLOSURES

The allowance for loan losses represents management’s estimate of probable loan losses which have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.

Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance.

The allowance consists of specific, general and unallocated components.  The specific component relates to impaired loans.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers loans not considered impaired and is based on historical loss experience adjusted for qualitative factors.  An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.

Homogeneous loan populations are collectively evaluated for impairment.  These loan populations may include premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, home equity and second mortgage loans, and tax product loans.  Commercial and agricultural loans as well as mortgage loans secured by other properties are monitored regularly by the Bank given the larger balances. When analysis of the borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business is not adequate to meet its debt service requirements, the individual loan or loan relationship is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance, 180 days or more for refund advance loans, 120 days or more for ERO advance loans loans and 90 days or more for other loan categories. Non-accrual loans and all troubled debt restructurings are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Loans receivable at June 30, 2017 and September 30, 2016 were as follows:
 
June 30, 2017
 
September 30, 2016
 
(Dollars in Thousands)
1-4 Family Real Estate
$
190,731

 
$
162,298

Commercial and Multi-Family Real Estate
493,859

 
422,932

Agricultural Real Estate
62,521

 
63,612

Consumer
172,151

 
37,094

Commercial Operating
39,076

 
31,271

Agricultural Operating
35,471

 
37,083

Premium Finance
231,587

 
171,604

Total Loans Receivable
1,225,396

 
925,894

 
 
 
 
Allowance for Loan Losses
(14,968
)
 
(5,635
)
Net Deferred Loan Origination Fees
(1,037
)
 
(789
)
Total Loans Receivable, Net
$
1,209,391

 
$
919,470

Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine months ended June 30, 2017 and 2016 was as follows:

 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
296

 
$
1,742

 
$
1,524

 
$
7,706

 
$
767

 
$
1,349

 
$
597

 
$
621

 
$
14,602

Provision (recovery) for loan losses
510

 
386

 
(80
)
 
142

 
249

 
(44
)
 
187

 
(110
)
 
1,240

Charge offs
—

 
—

 
—

 
(1
)
 
(799
)
 
—

 
(94
)
 
—

 
(894
)
Recoveries
—

 
—

 
—

 
—

 
5

 
—

 
15

 
—

 
20

Ending balance
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

Provision (recovery) for loan
losses
152

 
(70
)
 
1,302

 
7,773

 
1,244

 
(39
)
 
412

 
(42
)
 
10,732

Charge offs
—

 
—

 
—

 
(1
)
 
(1,149
)
 
—

 
(352
)
 
—

 
(1,502
)
Recoveries
—

 
—

 
—

 
24

 
10

 
12

 
57

 
—

 
103

Ending balance
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance: collectively evaluated for impairment
806

 
2,128

 
1,444

 
7,847

 
222

 
1,305

 
705

 
511

 
14,968

Total
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually
evaluated for impairment
133

 
1,301

 
—

 
—

 
—

 
—

 
—

 
—

 
1,434

Ending balance: collectively
evaluated for impairment
190,598

 
492,558

 
62,521

 
172,151

 
39,076

 
35,471

 
231,587

 
—

 
1,223,962

Total
$
190,731

 
$
493,859

 
$
62,521

 
$
172,151

 
$
39,076

 
$
35,471

 
$
231,587

 
$
—

 
$
1,225,396

 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
327

 
$
1,694

 
$
154

 
$
1,059

 
$
45

 
$
3,327

 
$
477

 
$
348

 
$
7,431

Provision (recovery) for loan losses
66

 
428

 
49

 
(243
)
 
281

 
1,436

 
95

 
(14
)
 
2,098

Charge offs
—

 
(95
)
 
—

 
(1
)
 
—

 
(3,253
)
 
(104
)
 
—

 
(3,453
)
Recoveries
—

 
—

 
—

 
1

 
—

 
—

 
43

 
—

 
44

Ending balance
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan
losses
115

 
1,225

 
40

 
796

 
298

 
1,226

 
772

 
(415
)
 
4,057

Charge offs
—

 
(385
)
 
—

 
(1
)
 
—

 
(3,253
)
 
(631
)
 
—

 
(4,270
)
Recoveries
—

 
—

 
—

 
1

 
—

 
—

 
77

 
—

 
78

Ending balance
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually
evaluated for impairment
31

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
31

Ending balance: collectively
evaluated for impairment
362

 
2,027

 
203

 
816

 
326

 
1,510

 
511

 
334

 
6,089

Total
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually
evaluated for impairment
210

 
994

 
—

 
—

 
3

 
—

 
—

 
—

 
1,207

Ending balance: collectively
evaluated for impairment
150,251

 
385,804

 
64,130

 
36,986

 
40,968

 
40,435

 
141,342

 
—

 
859,916

Total
$
150,461

 
$
386,798

 
$
64,130

 
$
36,986

 
$
40,971

 
$
40,435

 
$
141,342

 
$
—

 
$
861,123

Federal regulations promulgated by the Company's primary federal regulator, the Office of the Comptroller of the Currency (the "OCC"), provide for the classification of loans and other assets such as debt and equity securities. The loan classification and risk rating definitions for the Company and its wholly-owned subsidiary, MetaBank (the "Bank"), are generally as follows:

Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.

Watch- A watch asset is generally credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.

Special Mention- Special mention assets are credits with potential weaknesses deserving management’s close attention and if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.

Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified have well-defined weaknesses creating a distinct possibility that the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors the asset’s classification as loss is not yet appropriate.

Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Company's balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets.  When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount.  The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.
 
The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, or a geographic location.  Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the Allowance for Loan Losses.
 
The asset classification of loans at June 30, 2017 and September 30, 2016 were as follows:

June 30, 2017
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
189,645

 
$
488,279

 
$
27,580

 
$
172,151

 
$
39,076

 
$
20,018

 
$
231,587

 
$
1,168,336

Watch
532

 
3,871

 
—

 
—

 
—

 
41

 
—

 
4,444

Special Mention
398

 
203

 
2,939

 
—

 
—

 
—

 
—

 
3,540

Substandard
156

 
1,506

 
32,002

 
—

 
—

 
15,412

 
—

 
49,076

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
190,731

 
$
493,859

 
$
62,521

 
$
172,151

 
$
39,076

 
$
35,471

 
$
231,587

 
$
1,225,396


September 30, 2016
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894



One-to-Four Family Residential Mortgage Lending.  One-to-four family residential mortgage loan originations are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate and adjustable rate mortgage (“ARM”) loans for both permanent structures and those under construction.  The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas.

The Company originates one-to-four family residential mortgage loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the security property or the contract price.  The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level. Residential loans generally do not include prepayment penalties.

Due to consumer demand, the Company offers fixed-rate mortgage loans with terms up to 30 years, most of which conform to secondary market standards, such as Fannie Mae, Ginnie Mae, and Freddie Mac standards.  The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales.  Interest rates charged on these fixed-rate loans are competitively priced according to market conditions.

The Company also currently offers five- and ten-year ARM loans.  These loans have a fixed-rate for the stated period and, thereafter, adjust annually.  These loans generally provide for an annual cap of up to 200 basis points and a lifetime cap of 600 basis points over the initial rate.  As a consequence of using an initial fixed-rate and caps, the interest rates on these loans may not be as rate sensitive as the Company’s cost of funds.  The Company’s ARMs do not permit negative amortization of principal and are not convertible into fixed-rate loans.  The Company’s delinquency experience on its ARM loans has generally been similar to its experience on fixed-rate residential loans.  The current low mortgage interest rate environment makes ARM loans relatively unattractive and very few are currently being originated.

In underwriting one-to-four family residential real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan.  Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors.  The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan.  Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property.  The Company has not engaged in sub-prime residential mortgage originations.

Commercial and Multi-Family Real Estate Lending.  The Company engages in commercial and multi-family real estate lending in its primary market area and surrounding areas and, in order to supplement its loan portfolio, has purchased whole loan and participation interests in loans from other financial institutions.  The purchased loans and loan participation interests are generally secured by properties primarily located in the Midwest.

The Company’s commercial and multi-family real estate loan portfolio is secured primarily by apartment buildings, office buildings and hotels.  Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the security property, and are typically secured by guarantees of the borrowers.  The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio.  Commercial and multi-family real estate loans provide for a margin over a number of different indices.  In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan.  Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers.

Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one-to-four family residences.  This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans.  Furthermore, the repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project.  If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

Agricultural Lending.  The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer and other farm-related products.  Agricultural operating loans are originated at either an adjustable or fixed rate of interest for up to a one year term or, in the case of livestock, upon sale.  Such loans provide for payments of principal and interest at least annually or a lump sum payment upon maturity if the original term is less than one year.  Loans secured by agricultural machinery are generally originated as fixed-rate loans with terms of up to seven years.

Agricultural real estate loans are frequently originated with adjustable rates of interest.  Generally, such loans provide for a fixed rate of interest for the first five to ten years, which then balloon or adjust annually thereafter.  In addition, such loans generally amortize over a period of 20 to 25 years.  Fixed-rate agricultural real estate loans generally have terms up to ten years.  Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.

Agricultural lending affords the Company the opportunity to earn yields higher than those obtainable on one-to-four family residential lending, but involves a greater degree of risk than one-to-four family residential mortgage loans because of the typically larger loan amount.  In addition, payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized.  The success of the loan may also be affected by many factors outside the control of the borrower.

Weather presents one of the greatest risks as hail, drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral.  This risk can be reduced by the farmer with a variety of insurance coverages which can help to ensure loan repayment.  Government support programs and the Company generally require that farmers procure crop insurance coverage.  Grain and livestock prices also present a risk as prices may decline prior to sale, resulting in a failure to cover production costs.  These risks may be reduced by the farmer with the use of futures contracts or options to mitigate price risk.  The Company frequently requires borrowers to use futures contracts or options to reduce price risk and help ensure loan repayment.  Another risk is the uncertainty of government programs and other regulations.  During periods of low commodity prices, the income from government programs can be a significant source of cash for the borrower to make loan payments, and if these programs are discontinued or significantly changed, cash flow problems or defaults could result.  Finally, many farms are dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm.

Consumer Lending.  The Bank originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans and loans secured by savings deposits.  The Bank also offers other secured and unsecured consumer loans and currently originates most of its consumer loans in its primary market area and surrounding areas. In addition, the Bank’s consumer lending portfolio includes a purchased student loan portfolio, along with consumer lending products offered through its payments segment.

The Bank's consumer loan portfolio includes home equity loans and lines of credit.  Substantially all of the Bank's home equity loans and lines of credit are secured by second mortgages on principal residences.  The Bank will lend amounts which, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan.  Home equity loans and lines of credit generally have maximum terms of five years.


The Bank primarily originates automobile loans on a direct basis to the borrower, as opposed to indirect loans, which are made when the Bank purchases loan contracts, often at a discount, from automobile dealers which have extended credit to their customers.  The Bank’s automobile loans typically are originated at fixed interest rates with terms of up to 60 months for new and used vehicles.  Loans secured by automobiles are generally originated for up to 80% of the N.A.D.A. book value of the automobile securing the loan.

Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower.  The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan.  Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount.

Consumer loans may entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment.  In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation.  In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus more likely to be affected by adverse personal circumstances.  Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.

The Bank’s purchased private student loan portfolio is a seasoned portfolio that is serviced by ReliaMax Lending Services, LLC and insured by ReliaMax Surety Company. All loans in this portfolio are floating rate and indexed to the three-month LIBOR plus various margins.
Through its Payments segment, the Bank strives to offer consumers innovative payment products, including credit products. Most credit products have fallen into the category of portfolio lending. The Payments segment, including SCS, continues its development of new alternative portfolio lending products primarily to serve its customer base and to provide innovative lending solutions to the unbanked and under-banked segment.
The Payments segment also provides short-term consumer refund advance loans. Taxpayers are underwritten to determine eligibility for the unsecured advances. These consumer loans are interest and fee free to the consumer. Due to the nature of consumer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. Generally, when the refund advance loan becomes delinquent for 180 days or more, or when collection of principal becomes doubtful, the Company will charge off the loan balance.

Commercial Operating Lending.  The Company also originates commercial operating loans.  Most of the Company’s commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable, and operating costs for the Company’s network of tax ERO's. Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies.

The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment.  Generally, the maximum term on non-mortgage lines of credit is one year.  The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. ERO loans are not collateralized.  The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower.  Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s credit analysis.  As described further below, such loans are believed to carry higher credit risk than more traditional lending activities.

Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property whose value tends to be more easily ascertainable, commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business.  As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment).  The Company’s commercial operating loans are usually, but not always, secured by business assets and personal guarantees.  However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

Through its payments segment, the Bank also provides short-term ERO advance loans on a nation-wide basis. These loans are typically utilized to purchase tax preparation software and to prepare tax offices for the upcoming season. EROs go through an underwriting process to determine eligibility for the unsecured advances. Collection activities on ERO advances begin once the ERO begins to process refund transfers. Generally, when the ERO advance loan becomes delinquent for 120 days or more, or when collection of principal becomes doubtful, the Company will charge off the loan balance.

Premium Finance Lending.  Through its AFS/IBEX division, MetaBank provides short-term and primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk otherwise known as insurance premium financing.  This includes, but is not limited to, policies for commercial property, casualty and liability risk.  The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.

Insurance premium financing is the business of extending credit to a policyholder to pay for insurance premiums when the insurance carrier requires payment in full at inception of coverage.  Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term.  The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to ten months on average.  The down payment is set such that if the policy is canceled, the unearned premium returned is typically sufficient to cover the loan balance, accrued interest and other charges due.

Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-210 days to convert the collateral into cash.  In the event of default, AFS/IBEX, by statute and contract, has the power to cancel the insurance policy and establish a first position lien on the unearned portion of the premium from the insurance carrier. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium.  Generally, when a premium finance loan becomes delinquent for 210 days or more, or when collection of principal or interest becomes doubtful, the Company will charge off the loan balance and any remaining interest and fees after applying any collection from the insurance company.

Past due loans at June 30, 2017 and September 30, 2016 were as follows:
June 30, 2017
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
430

 
$
—

 
$
—

 
$
430

 
$
190,242

 
$
59

 
$
190,731

Commercial and Multi-Family Real Estate
—

 
549

 
—

 
549

 
493,141

 
169

 
493,859

Agricultural Real Estate
1,164

 
2,117

 
36,208

 
39,489

 
23,032

 
—

 
62,521

Consumer
666

 
570

 
9,372

 
10,608

 
161,543

 
—

 
172,151

Commercial Operating
—

 
—

 
—

 
—

 
39,076

 
—

 
39,076

Agricultural Operating
—

 
97

 
—

 
97

 
35,374

 
—

 
35,471

Premium Finance
100

 
719

 
805

 
1,624

 
229,963

 
—

 
231,587

   Total
$
2,360

 
$
4,052

 
$
46,385

 
$
52,797

 
$
1,172,371

 
$
228

 
$
1,225,396


September 30, 2016
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894


When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment.  Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans, 180 days or more for refund advance loans, 120 days or more for ERO advance loans and 90 days or more for other loan categories.  As of June 30, 2017, there were no Premium Finance loans greater than 210 days past due.

Total loans past due increased $49.6 million to $52.8 million at June 30, 2017 from $3.2 million at September 30, 2016. The majority of this increase was due to a $45.4 million increase in loans greater than 90 days past due. The primary drivers of the increase in loans greater than 90 days past due included two well collateralized agricultural loan relationships which are still accruing and are in the process of collection. Also leading to the increase in loans greater than 90 days past due was an increase in tax advance loans that were not repaid according to their terms, for which we are currently over 94% reserved, and we expect them all to be collected or written off by September 30, 2017.

Impaired loans at June 30, 2017 and September 30, 2016 were as follows:
 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
June 30, 2017
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
133

 
$
133

 
$
—

Commercial and Multi-Family Real Estate
1,301

 
1,301

 
—

Total
$
1,434

 
$
1,434

 
$
—

 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2016
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
84

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

Total
$
78

 
$
78

 
$
10


The following table provides the average recorded investment in impaired loans for the three and nine month periods ended June 30, 2017 and 2016.
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
(Dollars in Thousands)
1-4 Family Real Estate
$
210

 
$
146

 
$
197

 
$
127

Commercial and Multi-Family Real Estate
1,196

 
1,059

 
765

 
1,221

Agricultural Real Estate
388

 
—

 
194

 
—

Consumer
—

 
—

 
—

 
—

Commercial Operating
201

 
5

 
269

 
8

Agricultural Operating
715

 
2,280

 
358

 
3,891

Premium Finance
—

 
—

 
—

 
—

Total
$
2,710

 
$
3,490

 
$
1,783

 
$
5,247


The Company’s troubled debt restructurings (“TDR”) typically involve forgiving a portion of interest or principal on existing loans or making loans at a rate materially less than current market rates. There were no loans modified in a TDR during the three or nine month periods ended June 30, 2017 or 2016.  Additionally, there were no TDR loans for which there was a payment default during the three or nine month periods ended June 30, 2017 or 2016 that had been modified during the 12-month period prior to the default.
v3.7.0.1
ALLOWANCE FOR LOAN LOSSES
 9 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES

At June 30, 2017, the Company’s allowance for loan losses increased to $15.0 million from $5.6 million at September 30, 2016.
The increase in the allowance was primarily driven by a $8.6 million reserve related to a substantial increase in tax season loans. In addition, the downgrade of a significant agriculture relationship during the fiscal second quarter contributed to an increased provision and allowance. Given underlying collateral values related to our agricultural loans, we believe we have minimal loss exposure in the portfolio at this time. During the nine months ended June 30, 2017, the Company recorded a provision for loan losses of $10.7 million compared to $4.1 million for the same period of the prior year. The Company had $1.4 million of net charge offs for the nine months ended June 30, 2017, compared to $4.2 million for the nine months ended June 30, 2016.

The allowance for loan losses is established through the provision for loan losses based on management’s evaluation of the risk inherent in its loan portfolio and changes in the nature and volume of its loan activity, including those loans which are being specifically monitored by management.  Such evaluation, which includes a review of loans for which full collectability may not be reasonably assured, considers, among other matters, the estimated fair value of the underlying collateral, economic conditions, historical loan loss experience and other factors that warrant recognition in providing for an appropriate loan loss allowance.

Management closely monitors economic developments both regionally and nationwide, and considers these factors when assessing the appropriateness of its allowance for loan losses. The current economic environment continues to show signs of improvement in the Bank’s markets.  The Bank’s average loss rates over the past three years were low, offset with a higher agricultural loss rate in fiscal year 2016 driven by the charge off of one relationship. The Bank does not believe it is likely that these low loss conditions will continue indefinitely.  Although the Bank’s four market areas have indirectly benefited from a stable agricultural market, the market has become slightly stressed as commodity prices have remained lower than a few years ago. Management expects that future losses in the agriculture operations and agriculture real estate loan portfolios could be higher than recent historical experience. Management believes the low commodity prices and adverse weather conditions have the potential to negatively impact the economies of our agricultural markets.

Management believes that, based on a detailed review of the loan portfolio, historic loan losses, current economic conditions, the size of the loan portfolio and other factors, the current level of the allowance for loan losses at June 30, 2017, reflects an appropriate allowance against probable losses from the loan portfolio.  Although the Company maintains its allowance for loan losses at a level it considers to be appropriate, investors and others are cautioned that there can be no assurance that future losses will not exceed estimated amounts, or that additional provisions for loan losses will not be required in future periods.  In addition, the Company’s determination of the allowance for loan losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances.

Real estate properties acquired through foreclosure are recorded at the lesser of fair value or the recorded investment.  If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged to the allowance for loan losses at the time of transfer.  Valuations are periodically updated by management and, if the value declines, a specific provision for losses on such property is established by a charge to operations.
v3.7.0.1
EARNINGS PER COMMON SHARE
 9 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE

Earnings Per Share ("EPS") is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the EPS calculation. Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in the EPS calculations.

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and nine months ended June 30, 2017 and 2016 is presented below.
Three Months Ended June 30,
2017
 
2016 (1)
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
Basic income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
9,787

 
$
8,873

Weighted average common shares outstanding
9,349,989

 
8,512,043

     Basic income per common share
1.05

 
1.04

 
 
 
 
Diluted income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
9,787

 
$
8,873

Weighted average common shares outstanding
9,349,989

 
8,512,043

     Outstanding options - based upon the two-class method
60,320

 
57,175

Weighted average diluted common shares outstanding
9,410,309

 
8,569,218

     Diluted income per common share
1.04

 
1.04

Nine Months Ended June 30,
2017
 
2016 (1)
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
Basic income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
43,173

 
$
27,214

Average common shares outstanding
9,208,867

 
8,416,724

     Basic income per common share
4.69

 
3.23

 
 
 
 
Diluted income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
43,173

 
$
27,214

Average common shares outstanding
9,208,867

 
8,416,724

     Outstanding options - based upon the two-class method
60,524

 
51,651

Average diluted common shares outstanding
9,269,391

 
8,468,375

     Diluted income per common share
4.66

 
3.21


(1) See Note 1 Basis of Presentation for additional information describing adjustments made to the Company's EPS calculation. June 2016 QTD basic EPS of $1.05 was corrected to $1.04. June 2016 YTD basic EPS of $3.24 was corrected to $3.23 and diluted EPS of $3.22 was corrected to $3.21.
v3.7.0.1
SECURITIES
 9 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at June 30, 2017 and September 30, 2016 are presented below.
Available For Sale
 
 
GROSS

 
GROSS

 
 
At June 30, 2017
AMORTIZED
COST

 
UNREALIZED
GAINS

 
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
100,968

 
1,093

 
(1
)
 
102,060

Non-bank qualified obligations of states and political subdivisions
905,504

 
15,546

 
(3,175
)
 
917,875

Asset-backed securities
117,900

 
2,404

 
—

 
120,304

Mortgage-backed securities
672,554

 
359

 
(6,489
)
 
666,424

Total debt securities
1,796,926

 
19,402

 
(9,665
)
 
1,806,663

Common equities and mutual funds
1,040

 
409

 
(4
)
 
1,445

Total available for sale securities
$
1,797,966

 
$
19,811

 
$
(9,669
)
 
$
1,808,108

At September 30, 2016
AMORTIZED
COST

 
GROSS
UNREALIZED
GAINS

 
GROSS
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred securities
$
14,935

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

Non-bank qualified obligations of states and political subdivisions
668,628

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249



Held to Maturity
 
 
GROSS

 
GROSS

 
 
At June 30, 2017
AMORTIZED
COST

 
UNREALIZED
GAINS

 
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,509

 
$
176

 
$
(47
)
 
$
19,638

Non-bank qualified obligations of states and political subdivisions
445,220

 
4,774

 
(3,519
)
 
446,475

Mortgage-backed securities
117,399

 
—

 
(1,591
)
 
115,808

Total held to maturity securities
$
582,128

 
$
4,950

 
$
(5,157
)
 
$
581,921


At September 30, 2016
AMORTIZED
COST

 
GROSS
UNREALIZED
GAINS

 
GROSS
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
20,626

 
$
355

 
$
(44
)
 
$
20,937

Non-bank qualified obligations of states and political subdivisions
465,469

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574




Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary.  This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.

For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.


GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at June 30, 2017 or September 30, 2016.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2017 and September 30, 2016, were as follows:
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At June 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
$
3,955

 
$
(1
)
 
$
—

 
$
—

 
$
3,955

 
$
(1
)
Non-bank qualified obligations of states and political subdivisions
335,226

 
(3,175
)
 
—

 
—

 
335,226

 
(3,175
)
Mortgage-backed securities
506,991

 
(5,760
)
 
31,857

 
(729
)
 
538,848

 
(6,489
)
Total debt securities
846,172

 
(8,936
)
 
31,857

 
(729
)
 
878,029

 
(9,665
)
     Common equities and mutual funds
—

 
—

 
379

 
(4
)
 
379

 
(4
)
Total available for sale securities
$
846,172

 
$
(8,936
)
 
$
32,236

 
$
(733
)
 
$
878,408

 
$
(9,669
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

 
$
(1,957
)
Non-bank qualified obligations of states and political subdivisions
8,481

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

 
(3
)
Total available for sale securities
$
151,949

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)


Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At June 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
3,690

 
$
(20
)
 
$
1,764

 
$
(27
)
 
$
5,454

 
$
(47
)
Non-bank qualified obligations of states and political subdivisions
208,852

 
(3,495
)
 
1,262

 
(24
)
 
210,114

 
(3,519
)
Mortgage-backed securities
115,808

 
(1,591
)
 
—

 
—

 
115,808

 
(1,591
)
Total held to maturity securities
$
328,350

 
$
(5,106
)
 
$
3,026

 
$
(51
)
 
$
331,376

 
$
(5,157
)
 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
2,909

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

 
$
(44
)
Non-bank qualified obligations of states and political subdivisions
1,294

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

 
(31
)
Total held to maturity securities
$
24,264

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)


At June 30, 2017, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and because the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at June 30, 2017.

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
AMORTIZED
COST

 
FAIR
VALUE

 
At June 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
27,310

 
28,136

Due after five years through ten years
393,509

 
404,534

Due after ten years
703,553

 
707,569

 
1,124,372

 
1,140,239

Mortgage-backed securities
672,554

 
666,424

Common equities and mutual funds
1,040

 
1,445

Total available for sale securities
$
1,797,966

 
$
1,808,108

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249

Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

 
At June 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
341

 
$
340

Due after one year through five years
17,687

 
17,859

Due after five years through ten years
152,051

 
155,002

Due after ten years
294,650

 
292,912

 
464,729

 
466,113

Mortgage-backed securities
117,399

 
115,808

Total held to maturity securities
$
582,128

 
$
581,921

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
Due in one year or less
$
472

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574
v3.7.0.1
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements.

At June 30, 2017 and September 30, 2016, unfunded loan commitments approximated $263.5 million and $182.9 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract.

The Company had no commitments to purchase or sell securities at June 30, 2017 or September 30, 2016.

The exposure to credit loss in the event of nonperformance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments.
Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

Legal Proceedings

The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“INB”) that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of our position.  An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

The Bank commenced action against C&B Farms, LLC, Dakota River Farms, LLC, Dakota Grain Farms, LLC, Heather Swenson and Tracy Clement in early July, 2015, in the Third Judicial Circuit Court of the State of South Dakota, seeking to collect upon certain delinquent loans made in connection with the 2014 farming operations of the three identified limited liability companies and the personal guaranties of Swenson and Clement. The three companies and Clement answered the Complaint and asserted a counterclaim against the Bank and a third-party claim against the Bank’s loan officer, alleging fraud and misrepresentation, as well as promissory estoppel.   On January 7, 2016, the Bank obtained a judgment for $6.1 million, the full amount due and owing on the delinquent loans, together with attorneys’ fees, costs and post-judgment interest.  On February 25, 2016, the Court entered an order and judgment in favor of the Bank granting the Bank’s renewed motion for summary judgment as to counterclaims and third party claim. Tracy Clement, the primary guarantor of the C&B Farms, Dakota Grain Farms, and Dakota River Farms indebtedness has filed a Chapter 11 bankruptcy proceeding in Minnesota. The Bank is an unsecured creditor in the bankruptcy proceeding. The Bank still has the right to collect from the three limited liability company debtors (C&B, Dakota Grain, and Dakota River). However, the Bank believes each entity is now insolvent and that the collateral has been recovered and liquidated to the extent possible. The Bank has also settled with the other personal guarantor, Heather Swenson. The Bank commenced action against Interstate Commodities, Inc., on February 1, 2016, in the United States District Court for the District of South Dakota, Central Division. This matter arises out of the Bank’s loans to C&B Farms, which were guaranteed by Tracy Clement. The case alleges that Interstate Commodities has breached the terms of a subordination agreement entered into between Interstate Commodities and the Bank relating to the 2015 crops of C&B Farms, LLC. In March 2015, the Bank sent a letter to C&B Farms and Interstate Commodities agreeing that the Bank would subordinate its first position lien in the farm products of C&B Farms once the Bank’s 2015 input advances in an agreed upon sum had been paid in full. Interstate Commodities entered into various agreements with C&B Farms in which they agreed to purchase grain at a future date and provided purchase price advance financing to C&B Farms. Interstate Commodities also partially performed under the subordination agreement by paying or allowing certain sums to flow back to the Bank to pay on the agreed upon inputs. Interstate Commodities terminated the payments to the Bank before allowing full repayment of the 2015 inputs financed by the Bank before the full amount agreed to in the subordination agreement was reached. This large, non-performing agricultural relationship was partially charged off during fiscal year 2016 and has no remaining loan balance.

The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank earlier this year. Card Limited alleges that after all of the programs were wound down, there were two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $1,579,398. The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

Other than the matters set forth above and litigation routine to the Company's or its subsidiaries' respective businesses, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party.
v3.7.0.1
STOCK COMPENSATION
 9 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
STOCK COMPENSATION
STOCK COMPENSATION

The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of non-vested (restricted) shares granted under the Company’s incentive plan is equal to the fair market value of the underlying stock at the grant date. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur.

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the Company’s 2002 Omnibus Incentive Plan for the nine months ended June 30, 2017:

 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)
 
Aggregate
 Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68
 
$
4,379

Granted
—

 
—

 

 


Exercised
(26,352
)
 
32.63

 

 
1,682

Forfeited or expired
(16,252
)
 
24.61

 

 
1,272

Options outstanding, June 30, 2017
82,956

 
$
23.76

 
2.34
 
$
5,412

 
 
 
 
 
 
 
 
Options exercisable, June 30, 2017
82,956

 
$
23.76

 
2.34
 
$
5,412


 
Number
of
Shares

 
Weighted
Average
Fair Value
at Grant

(Dollars in Thousands, Except Share and Per Share Data)
Nonvested (restricted) shares outstanding, September 30, 2016
20,656

 
$
41.37

Granted
306,604

 
87.91

Vested
(22,071
)
 
71.37

Forfeited or expired
(442
)
 
56.25

Nonvested (restricted) shares outstanding, June 30, 2017
304,747

 
$
86.00



During the first and second quarters of fiscal 2017, stock awards were granted to the Company's three highest paid executive officers in connection with their signing of employment agreements with the Company. These stock awards vest over eight years.

At June 30, 2017, stock-based compensation expense not yet recognized in income totaled $19.0 million, which is expected to be recognized over a weighted average remaining period of 4.07 years.
v3.7.0.1
SEGMENT INFORMATION
 9 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The following tables present segment data for the Company for the three and nine months ended June 30, 2017 and 2016, respectively.
 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Interest income
$
3,576

 
$
14,092

 
$
11,193

 
$
28,861

Interest expense
—

 
717

 
3,201

 
3,918

Net interest income
3,576

 
13,375

 
7,992

 
24,943

Provision for loan losses
352

 
888

 
—

 
1,240

Non-interest income
28,934

 
1,190

 
696

 
30,820

Non-interest expense
24,787

 
5,729

 
11,703

 
42,219

Income (loss) before income tax expense (benefit)
7,371

 
7,948

 
(3,015
)
 
12,304

 
 
 
 
 
 
 
 
Total assets
52,276

 
1,229,533

 
2,737,884

 
4,019,693

Total deposits
2,443,332

 
224,886

 
485,001

 
3,153,219


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Nine Months Ended June 30, 2017
 
 
 
 
 
 
 
Interest income
$
9,800

 
$
37,654

 
$
31,700

 
$
79,154

Interest expense
503

 
1,932

 
7,977

 
10,412

Net interest income
9,297

 
35,722

 
23,723

 
68,742

Provision for loan losses
8,566

 
2,166

 
—

 
10,732

Non-interest income
138,420

 
3,648

 
271

 
142,339

Non-interest expense
87,111

 
17,243

 
41,564

 
145,918

Income (loss) before income tax expense (benefit)
52,040

 
19,961

 
(17,570
)
 
54,431

 
 
 
 
 
 
 
 
Total assets
52,276

 
1,229,533

 
2,737,884

 
4,019,693

Total deposits
2,443,332

 
224,886

 
485,001

 
3,153,219


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Interest income
$
2,579

 
$
9,759

 
$
8,425

 
$
20,763

Interest expense
44

 
344

 
456

 
844

Net interest income
2,535

 
9,415

 
7,969

 
19,919

Provision for loan losses
1

 
2,097

 
—

 
2,098

Non-interest income
22,160

 
1,296

 
351

 
23,807

Non-interest expense
16,231

 
5,347

 
10,049

 
31,627

Income (loss) before income tax expense (benefit)
8,463

 
3,267

 
(1,729
)
 
10,001

 
 
 
 
 
 
 
 
Total assets
48,203

 
860,493

 
2,235,470

 
3,144,166

Total deposits
1,908,961

 
277,995

 
—

 
2,186,956


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Nine Months Ended June 30, 2016
 
 
 
 
 
 
 
Interest income
$
7,176

 
$
27,559

 
$
24,932

 
$
59,667

Interest expense
138

 
913

 
1,204

 
2,255

Net interest income
7,038

 
26,646

 
23,728

 
57,412

Provision for loan losses
1,034

 
3,023

 
—

 
4,057

Non-interest income
77,103

 
3,251

 
1,188

 
81,542

Non-interest expense
57,968

 
15,993

 
29,464

 
103,425

Income (loss) before income tax expense (benefit)
25,139

 
10,881

 
(4,548
)
 
31,472

 
 
 
 
 
 
 
 
Total assets
48,203

 
860,493

 
2,235,470

 
3,144,166

Total deposits
1,908,961

 
277,995

 
—

 
2,186,956
v3.7.0.1
NEW ACCOUNTING PRONOUNCEMENTS
 9 Months Ended
Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and taking measures so that its systems capture data applicable to the standard.

ASU No. 2016-04, Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistent with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the consolidated financial statements to be minimal.

ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements.  This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company has finalized their initial assessment of the ASU and determined the standard will be immaterial to the consolidated financial statements with the Company's current leases.

ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)

This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to provide guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs so as to ascertain how breakage will be recognized under the standard.

ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and does not have an impact on the consolidated financial statements .

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company early adopted the standard in the Company's third quarter of fiscal year 2017. Under the new standard, excess tax benefits and deficiencies related to employee stock-based compensation will be recognized directly within income tax expense or benefit in the Consolidated Statement of Income, rather than within additional paid-in capital. Additionally, as permitted under the new guidance, an accounting policy election was made to account for forfeitures of awards as they occur, which represents a change from the current requirement to estimate forfeitures when recognizing compensation expense. The impact of applying that guidance reduced reported income tax expense by $0.5 million for the quarter ended June 30, 2017. All income tax-related cash flows resulting from share-based payments are reported as an operating activity in the consolidated statements of cash flows. The Company elected to adopt the change in cash flow classification on a prospective basis, which resulted in an increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statement of cash flows for the nine months ended June 30, 2017.

ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

This ASU addresses eight classification issues related to the statement of cash flows including: debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.

ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities

This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the consolidated financial statements .
v3.7.0.1
FAIR VALUE MEASUREMENTS
 9 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS

Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement.  It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs – Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs – Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available.  These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Securities Available for Sale and Held to Maturity.  Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds, corporate debt securities and trust preferred securities.  The Company had no Level 3 securities at June 30, 2017 or September 30, 2016.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.
 
The following table summarizes the fair values of securities available for sale and held to maturity at June 30, 2017 and September 30, 2016.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
Fair Value At June 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
102,060

 
—

 
102,060

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,638

 
—

 
19,638

 
—

Non-bank qualified obligations of states and political subdivisions
917,875

 
—

 
917,875

 
—

 
446,475

 
—

 
446,475

 
—

Asset-backed securities
120,304

 
—

 
120,304

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
666,424

 
—

 
666,424

 
—

 
115,808

 
—

 
115,808

 
—

Total debt securities
1,806,663

 
—

 
1,806,663

 
—

 
581,921

 
—

 
581,921

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,808,108

 
$
1,445

 
$
1,806,663

 
$
—

 
$
581,921

 
$
—

 
$
581,921

 
$
—

 
Fair Value At September 30, 2016
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

Non-bank qualified obligations of states and political subdivisions
698,672

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—



Loans.  The Company does not record loans at fair value on a recurring basis.  However, if a loan is considered impaired, an allowance for loan losses is established.  Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables.

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2017 and September 30, 2016.
 
 
Fair Value At June 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
     Total Impaired Loans
$
—

 
$
—

 
$
—

 
$
—

Foreclosed Assets, net
$
364

 
$
—

 
$
—

 
$
364

Total
$
364

 
$
—

 
$
—

 
$
364

 
Fair Value At September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
  1-4 family residential mortgage loans
$
68

 
$
—

 
$
—

 
$
68

     Total Impaired Loans
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
 
 
 
 
76

Total
$
144

 
$
—

 
$
—

 
$
144


 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
June 30, 2017
 
Fair Value at
September 30, 2016
 
Valuation
Technique
 
Unobservable Input
 
Range of Inputs
Impaired Loans, net
$
—

 
68

 
Market approach
 
Appraised values (1)
 
4.00 - 10.00%
Foreclosed Assets, net
$
364

 
76

 
Market approach
 
Appraised values (1)
 
4.00 - 10.00%
(1) 
The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimating selling costs in a range of 4% to 10%.

The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below.  It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of June 30, 2017 and September 30, 2016, as more fully described below.  The operations of the Company are managed from a going concern basis and not a liquidation basis.  As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations.  Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value.  Neither of these components have been given consideration in the presentation of fair values below.

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2017 and September 30, 2016.
 
 
June 30, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
65,630

 
$
65,630

 
$
65,630

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,808,108

 
1,808,108

 
1,445

 
1,806,663

 
—

Securities held to maturity
582,128

 
581,921

 
—

 
581,921

 
—

Total securities
2,390,236

 
2,390,029

 
1,445

 
2,388,584

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
190,731

 
188,813

 
—

 
—

 
188,813

Commercial and multi-family real estate loans
493,859

 
484,155

 
—

 
—

 
484,155

Agricultural real estate loans
62,521

 
62,275

 
—

 
—

 
62,275

Consumer loans
172,151

 
173,416

 
—

 
—

 
173,416

Commercial operating loans
39,076

 
38,965

 
—

 
—

 
38,965

Agricultural operating loans
35,471

 
35,395

 
—

 
—

 
35,395

Premium finance loans
231,587

 
231,573

 
—

 
—

 
231,573

Total loans receivable
1,225,396

 
1,214,592

 
—

 
—

 
1,214,592

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
16,323

 
16,323

 
—

 
16,323

 
—

Accrued interest receivable
21,831

 
21,831

 
21,831

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Noninterest bearing demand deposits
2,481,673

 
2,481,673

 
2,481,673

 
—

 
—

Interest bearing demand deposits, savings, and money markets
142,929

 
142,929

 
142,929

 
—

 
—

Certificates of deposit
83,760

 
83,190

 
—

 
83,190

 
—

Wholesale non-maturing deposits
23,505

 
23,505

 
23,505

 
—

 
—

Wholesale certificates of deposit
421,352

 
420,680

 
—

 
420,680

 
—

Total deposits
3,153,219

 
3,151,977

 
2,648,107

 
503,870

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
7,000

 
7,807

 
—

 
7,807

 
—

Federal funds purchased
275,000

 
275,000

 
275,000

 
—

 
—

Securities sold under agreements to repurchase
2,100

 
2,100

 
—

 
2,100

 
—

Capital lease
1,958

 
1,958

 
—

 
1,958

 
—

Trust preferred securities
10,310

 
10,446

 
—

 
10,446

 
—

Subordinated debentures
73,312

 
75,750

 
—

 
75,750

 
—

Accrued interest payable
2,463

 
2,463

 
2,463

 
—

 
—

 
September 30, 2016
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
773,830

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Noninterest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

Interest bearing demand deposits, savings, and money markets
136,568

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital lease
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred securities
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—



The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at June 30, 2017 and September 30, 2016.
 
CASH AND CASH EQUIVALENTS
The carrying amount of cash and short-term investments is assumed to approximate the fair value.
 
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY
Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair values for investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

LOANS RECEIVABLE, NET
The fair value of loans is estimated using a historical or replacement cost basis concept (i.e., an entrance price concept).  The fair value of loans was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers and for similar remaining maturities.  When using the discounting method to determine fair value, homogeneous loans with similar terms and conditions were grouped together and discounted at a target rate at which similar loans would be made to borrowers at June 30, 2017 or September 30, 2016.  In addition, when computing the estimated fair value for all loans, allowances for loan losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component.
 
FEDERAL HOME LOAN BANK (“FHLB”) STOCK
The fair value of FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
The carrying values of non-interest bearing checking deposits, interest bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty.  The fair value of time certificates of deposit and wholesale certificates of deposit were estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities.
 
In accordance with ASC 825, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangibles are not financial instruments as defined under ASC 825.
 
ADVANCES FROM FHLB
The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.
 
FEDERAL FUNDS PURCHASED
The carrying amount of federal funds purchased is assumed to approximate the fair value.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND SUBORDINATED DEBENTURES
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 
LIMITATIONS
Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
v3.7.0.1
GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $98.7 million of goodwill as of June 30, 2017. The recorded goodwill was due to two separate business combinations during fiscal 2015 and two separate business combinations during the first quarter of fiscal 2017: $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014; $25.4 million of goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015; $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016; and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The goodwill associated with these transactions is deductible for tax purposes.
 
The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2017 and 2016 were as follows:
 
 
2017
 
2016
 
(Dollars in Thousands)
Goodwill
 
 
 
Balance as of September 30,
$
36,928

 
$
36,928

Acquisitions during the period
61,795

 
—

Write-offs during the period
—

 
—

Balance as of June 30,
$
98,723

 
$
36,928


 
Trademark(1)
 
Non-Compete(2)
 
Customer
Relationships(3)
 
All Others(4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,922

 
46,372

Amortization during the period
(442
)
 
(371
)
 
(9,084
)
 
(598
)
 
(10,495
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of June 30, 2017
$
10,207

 
$
1,936

 
$
43,276

 
$
9,379

 
$
64,798

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
10,990

 
$
2,480

 
$
57,810

 
$
10,478

 
$
81,758

Accumulated amortization
$
(783
)
 
$
(544
)
 
$
(14,534
)
 
$
(1,099
)
 
$
(16,960
)
Balance as of June 30, 2017
$
10,207

 
$
1,936

 
$
43,276

 
$
9,379

 
$
64,798

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

 
Trademark(1)
 
Non-Compete(2)
 
Customer
Relationships(3)
 
All Others(4)
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
155

 
155

Amortization during the period
(216
)
 
(75
)
 
(3,191
)
 
(162
)
 
(3,644
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of June 30, 2016
$
5,223

 
$
152

 
$
21,620

 
$
3,093

 
$
30,088

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
5,490

 
$
300

 
$
26,040

 
$
3,539

 
$
35,369

Accumulated amortization
$
(267
)
 
$
(148
)
 
$
(4,420
)
 
$
(446
)
 
$
(5,281
)
Balance as of June 30, 2016
$
5,223

 
$
152

 
$
21,620

 
$
3,093

 
$
30,088


(1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining period of fiscal 2017 and subsequent fiscal years is as follows:
 
(Dollars in Thousands)
Remaining in 2017
$
1,828

2018
11,855

2019
9,073

2020
7,292

2021
6,338

2022
5,030

Thereafter
23,382

Total anticipated intangible amortization
$
64,798



The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.  There were no impairments to intangible assets during the three or nine months ended June 30, 2017 or 2016.  The annual goodwill impairment test for fiscal 2017 will be conducted at September 30, 2017.
v3.7.0.1
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS
 9 Months Ended
Jun. 30, 2017
Banking and Thrift [Abstract]  
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS

On January 5, 2015, the Federal Deposit Insurance Corporation (“FDIC”) published industry guidance in the form of Frequently Asked Questions (“FAQs”) with respect to the categorization of deposit liabilities as “brokered” deposits. On November 13, 2015, the FDIC issued for comment updated and annotated FAQs, and on June 30, 2016, the FDIC finalized the FAQs. The Company believes that the final FAQs do not materially impact the processes that it uses to identify, accept and report brokered deposits. On April 26, 2016, the FDIC issued a final rule to amend how small banks (less than $10 billion in assets that have been FDIC insured for at least five years) are assessed for deposit insurance (the "Final Rule"). The Final Rule imposes higher assessments for banks that the FDIC believes present higher risk profiles. The Final Rule became effective with the Bank's December 2016 assessment invoice, which the Company received in March 2017.

Due to the Bank’s status as a "well-capitalized" institution under the FDIC's prompt corrective action regulations, and further with respect to the Bank’s financial condition in general, the Company does not at this time anticipate that either the FAQs or the Final Rule will have a material adverse impact on the Company’s business operations.  However, should the Bank ever fail to be well-capitalized in the future, as a result of failing to meet the well-capitalized requirements, or the imposition of an individual minimum capital requirement or similar formal requirements, then, notwithstanding that the Bank has capital in excess of the well-capitalized minimum requirements, the Bank would be prohibited, absent waiver from the FDIC, from utilizing brokered deposits (i.e., may not accept, renew or rollover brokered deposits), which could produce serious adverse effects on the Company’s liquidity, and financial condition and results of operations.  Similarly, should the Bank’s financial condition in general deteriorate, future FDIC assessments could have a material adverse effect on the Company.
On July 10, 2017, the Consumer Financial Protection Bureau (“CFPB”) issued its final rule with respect to the use of class action waivers in consumer arbitration agreements (“Rule”). As a result, the Rule will require that the Bank (i) no longer include a class action waiver provision in most of its contracts for consumer financial products and services offered by the Bank, including its prepaid card agreements and unsecured consumer loan agreements, and (ii) insert specific language into its arbitration provision that discloses to the consumer that the arbitration provision cannot be used to block or impede their participation in a class action. Additionally, to the extent that the Bank participates in individual arbitrations with consumers after the effective date of the Rule, it will be required to submit most data related to such arbitration to the CFPB for its review and analysis within 60 days of such data’s submission to an arbitrator or a court.

The Rule will apply to consumer product agreements (including consumer loan and prepaid agreements) 241 days after publication of the Rule in the Federal Register. However, as of the date of this filing, it is possible that the Rule will be blocked by legislative or other action. Regardless of this possibility, the Bank has begun to review the products and services to which the Rule will apply and has begun to identify the processes and procedures needed to implement the Rule across the Bank’s affected product portfolio.
v3.7.0.1
SUBSEQUENT EVENTS
 9 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

On July 27, 2017, the Company was advised they will not be providing interest-free Refund Advance loans for H&R Block tax preparation customers during the 2018 tax season. The Company’s relationship with H&R Block represented approximately $12.0 million in net earnings during fiscal year 2017. Given the loss of this relationship, the Company is reviewing the carrying value of intangible assets for potential impairment. The Company preliminarily estimates a pre-tax impairment charge of $10.7 million that would be recognized in the fourth quarter of fiscal 2017.
 
On August 2, 2017, the Company's bank subsidiary, MetaBank, entered into an extension to its current agreement with Jackson Hewitt Tax Service® to offer on an annual basis up to $750 million of interest-free refund advance loans, an increase of $300 million in available funds over last year. The agreement includes underwriting, origination, servicing, and loan retention, and is supported by Specialty Consumer Services, a division of MetaBank. Under the extended agreement, MetaBank will continue to provide these services through the 2020 tax season.
v3.7.0.1
NEW ACCOUNTING PRONOUNCEMENTS (Policies)
 9 Months Ended
Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
New Accounting Pronouncements
Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and taking measures so that its systems capture data applicable to the standard.

ASU No. 2016-04, Extinguishment of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products

This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistent with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the consolidated financial statements to be minimal.

ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis

This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements.  This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company has finalized their initial assessment of the ASU and determined the standard will be immaterial to the consolidated financial statements with the Company's current leases.

ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)

This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to provide guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs so as to ascertain how breakage will be recognized under the standard.

ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and does not have an impact on the consolidated financial statements .

ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company early adopted the standard in the Company's third quarter of fiscal year 2017. Under the new standard, excess tax benefits and deficiencies related to employee stock-based compensation will be recognized directly within income tax expense or benefit in the Consolidated Statement of Income, rather than within additional paid-in capital. Additionally, as permitted under the new guidance, an accounting policy election was made to account for forfeitures of awards as they occur, which represents a change from the current requirement to estimate forfeitures when recognizing compensation expense. The impact of applying that guidance reduced reported income tax expense by $0.5 million for the quarter ended June 30, 2017. All income tax-related cash flows resulting from share-based payments are reported as an operating activity in the consolidated statements of cash flows. The Company elected to adopt the change in cash flow classification on a prospective basis, which resulted in an increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statement of cash flows for the nine months ended June 30, 2017.

ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

This ASU addresses eight classification issues related to the statement of cash flows including: debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements.

ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities

This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the consolidated financial statements .
v3.7.0.1
ACQUISITION (Tables)
 9 Months Ended
Jun. 30, 2017
EPS [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated statement of financial condition as of November 1, 2016.
 
As of November 1, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
   Cash
$
21,877

   Stock issued
26,507

      Total consideration paid
48,384

 
 
Fair value of assets acquired
 
   Intangible assets
17,930

   Other assets
79

      Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375
SCS [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the consolidated statement of financial condition as of December 14, 2016.
 
As of December 14, 2016
 
(Dollars in Thousands)
Fair value of transaction consideration
 
   Cash
7,548

   Stock issued
10,789

      Paid consideration
18,337

   Contingent consideration - cash
17,252

   Contingent consideration - equity
24,142

      Contingent consideration payable
41,394

         Total consideration paid
59,731

 
 
Fair value of assets acquired
 
   Intangible assets
28,310

   Other assets
2

      Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
31,419
v3.7.0.1
CREDIT DISCLOSURES (Tables)
 9 Months Ended
Jun. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans Receivable
Loans receivable at June 30, 2017 and September 30, 2016 were as follows:
 
June 30, 2017
 
September 30, 2016
 
(Dollars in Thousands)
1-4 Family Real Estate
$
190,731

 
$
162,298

Commercial and Multi-Family Real Estate
493,859

 
422,932

Agricultural Real Estate
62,521

 
63,612

Consumer
172,151

 
37,094

Commercial Operating
39,076

 
31,271

Agricultural Operating
35,471

 
37,083

Premium Finance
231,587

 
171,604

Total Loans Receivable
1,225,396

 
925,894

 
 
 
 
Allowance for Loan Losses
(14,968
)
 
(5,635
)
Net Deferred Loan Origination Fees
(1,037
)
 
(789
)
Total Loans Receivable, Net
$
1,209,391

 
$
919,470
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine months ended June 30, 2017 and 2016 was as follows:

 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
296

 
$
1,742

 
$
1,524

 
$
7,706

 
$
767

 
$
1,349

 
$
597

 
$
621

 
$
14,602

Provision (recovery) for loan losses
510

 
386

 
(80
)
 
142

 
249

 
(44
)
 
187

 
(110
)
 
1,240

Charge offs
—

 
—

 
—

 
(1
)
 
(799
)
 
—

 
(94
)
 
—

 
(894
)
Recoveries
—

 
—

 
—

 
—

 
5

 
—

 
15

 
—

 
20

Ending balance
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
654

 
$
2,198

 
$
142

 
$
51

 
$
117

 
$
1,332

 
$
588

 
$
553

 
$
5,635

Provision (recovery) for loan
losses
152

 
(70
)
 
1,302

 
7,773

 
1,244

 
(39
)
 
412

 
(42
)
 
10,732

Charge offs
—

 
—

 
—

 
(1
)
 
(1,149
)
 
—

 
(352
)
 
—

 
(1,502
)
Recoveries
—

 
—

 
—

 
24

 
10

 
12

 
57

 
—

 
103

Ending balance
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance: collectively evaluated for impairment
806

 
2,128

 
1,444

 
7,847

 
222

 
1,305

 
705

 
511

 
14,968

Total
$
806

 
$
2,128

 
$
1,444

 
$
7,847

 
$
222

 
$
1,305

 
$
705

 
$
511

 
$
14,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually
evaluated for impairment
133

 
1,301

 
—

 
—

 
—

 
—

 
—

 
—

 
1,434

Ending balance: collectively
evaluated for impairment
190,598

 
492,558

 
62,521

 
172,151

 
39,076

 
35,471

 
231,587

 
—

 
1,223,962

Total
$
190,731

 
$
493,859

 
$
62,521

 
$
172,151

 
$
39,076

 
$
35,471

 
$
231,587

 
$
—

 
$
1,225,396

 
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Unallocated
 
Total
 
(Dollars in Thousands)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
327

 
$
1,694

 
$
154

 
$
1,059

 
$
45

 
$
3,327

 
$
477

 
$
348

 
$
7,431

Provision (recovery) for loan losses
66

 
428

 
49

 
(243
)
 
281

 
1,436

 
95

 
(14
)
 
2,098

Charge offs
—

 
(95
)
 
—

 
(1
)
 
—

 
(3,253
)
 
(104
)
 
—

 
(3,453
)
Recoveries
—

 
—

 
—

 
1

 
—

 
—

 
43

 
—

 
44

Ending balance
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended June 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
$
278

 
$
1,187

 
$
163

 
$
20

 
$
28

 
$
3,537

 
$
293

 
$
749

 
$
6,255

Provision (recovery) for loan
losses
115

 
1,225

 
40

 
796

 
298

 
1,226

 
772

 
(415
)
 
4,057

Charge offs
—

 
(385
)
 
—

 
(1
)
 
—

 
(3,253
)
 
(631
)
 
—

 
(4,270
)
Recoveries
—

 
—

 
—

 
1

 
—

 
—

 
77

 
—

 
78

Ending balance
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually
evaluated for impairment
31

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
31

Ending balance: collectively
evaluated for impairment
362

 
2,027

 
203

 
816

 
326

 
1,510

 
511

 
334

 
6,089

Total
$
393

 
$
2,027

 
$
203

 
$
816

 
$
326

 
$
1,510

 
$
511

 
$
334

 
$
6,120

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance: individually
evaluated for impairment
210

 
994

 
—

 
—

 
3

 
—

 
—

 
—

 
1,207

Ending balance: collectively
evaluated for impairment
150,251

 
385,804

 
64,130

 
36,986

 
40,968

 
40,435

 
141,342

 
—

 
859,916

Total
$
150,461

 
$
386,798

 
$
64,130

 
$
36,986

 
$
40,971

 
$
40,435

 
$
141,342

 
$
—

 
$
861,123
Asset Classification of Loans
The asset classification of loans at June 30, 2017 and September 30, 2016 were as follows:

June 30, 2017
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
189,645

 
$
488,279

 
$
27,580

 
$
172,151

 
$
39,076

 
$
20,018

 
$
231,587

 
$
1,168,336

Watch
532

 
3,871

 
—

 
—

 
—

 
41

 
—

 
4,444

Special Mention
398

 
203

 
2,939

 
—

 
—

 
—

 
—

 
3,540

Substandard
156

 
1,506

 
32,002

 
—

 
—

 
15,412

 
—

 
49,076

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
190,731

 
$
493,859

 
$
62,521

 
$
172,151

 
$
39,076

 
$
35,471

 
$
231,587

 
$
1,225,396


September 30, 2016
1-4 Family
Real Estate
 
Commercial and
Multi-Family
Real Estate
 
Agricultural
Real Estate
 
Consumer
 
Commercial
Operating
 
Agricultural
Operating
 
Premium
Finance
 
Total
 
(Dollars in Thousands)
Pass
$
161,255

 
$
421,577

 
$
34,421

 
$
37,094

 
$
30,574

 
$
19,669

 
$
171,604

 
$
876,194

Watch
200

 
72

 
2,934

 
—

 
184

 
4,625

 
—

 
8,015

Special Mention
666

 
962

 
25,675

 
—

 
—

 
5,407

 
—

 
32,710

Substandard
177

 
321

 
582

 
—

 
513

 
7,382

 
—

 
8,975

Doubtful
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
162,298

 
$
422,932

 
$
63,612

 
$
37,094

 
$
31,271

 
$
37,083

 
$
171,604

 
$
925,894
Past Due Loans
Past due loans at June 30, 2017 and September 30, 2016 were as follows:
June 30, 2017
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
430

 
$
—

 
$
—

 
$
430

 
$
190,242

 
$
59

 
$
190,731

Commercial and Multi-Family Real Estate
—

 
549

 
—

 
549

 
493,141

 
169

 
493,859

Agricultural Real Estate
1,164

 
2,117

 
36,208

 
39,489

 
23,032

 
—

 
62,521

Consumer
666

 
570

 
9,372

 
10,608

 
161,543

 
—

 
172,151

Commercial Operating
—

 
—

 
—

 
—

 
39,076

 
—

 
39,076

Agricultural Operating
—

 
97

 
—

 
97

 
35,374

 
—

 
35,471

Premium Finance
100

 
719

 
805

 
1,624

 
229,963

 
—

 
231,587

   Total
$
2,360

 
$
4,052

 
$
46,385

 
$
52,797

 
$
1,172,371

 
$
228

 
$
1,225,396


September 30, 2016
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater Than
90 Days
 
Total Past
Due
 
Current
 
Non-Accrual
Loans
 
Total Loans
Receivable
 
(Dollars in Thousands)
1-4 Family Real Estate
$
—

 
$
30

 
$
—

 
$
30

 
$
162,185

 
$
83

 
$
162,298

Commercial and Multi-Family Real Estate
—

 
—

 
—

 
—

 
422,932

 
—

 
422,932

Agricultural Real Estate
—

 
—

 
—

 
—

 
63,612

 
—

 
63,612

Consumer
—

 
—

 
53

 
53

 
37,041

 
—

 
37,094

Commercial Operating
151

 
354

 
—

 
505

 
30,766

 
—

 
31,271

Agricultural Operating
—

 
—

 
—

 
—

 
37,083

 
—

 
37,083

Premium Finance
1,398

 
275

 
965

 
2,638

 
168,966

 
—

 
171,604

Total
$
1,549

 
$
659

 
$
1,018

 
$
3,226

 
$
922,585

 
$
83

 
$
925,894
Impaired Loans
Impaired loans at June 30, 2017 and September 30, 2016 were as follows:
 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
June 30, 2017
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
133

 
$
133

 
$
—

Commercial and Multi-Family Real Estate
1,301

 
1,301

 
—

Total
$
1,434

 
$
1,434

 
$
—

 
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
September 30, 2016
(Dollars in Thousands)
Loans without a specific valuation allowance
 
 
 
 
 
1-4 Family Real Estate
$
84

 
$
84

 
$
—

Commercial and Multi-Family Real Estate
433

 
433

 
—

Total
$
517

 
$
517

 
$
—

Loans with a specific valuation allowance
 

 
 

 
 

1-4 Family Real Estate
$
78

 
$
78

 
$
10

Total
$
78

 
$
78

 
$
10


The following table provides the average recorded investment in impaired loans for the three and nine month periods ended June 30, 2017 and 2016.
 
Three Months Ended June 30,
 
Nine Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
(Dollars in Thousands)
1-4 Family Real Estate
$
210

 
$
146

 
$
197

 
$
127

Commercial and Multi-Family Real Estate
1,196

 
1,059

 
765

 
1,221

Agricultural Real Estate
388

 
—

 
194

 
—

Consumer
—

 
—

 
—

 
—

Commercial Operating
201

 
5

 
269

 
8

Agricultural Operating
715

 
2,280

 
358

 
3,891

Premium Finance
—

 
—

 
—

 
—

Total
$
2,710

 
$
3,490

 
$
1,783

 
$
5,247
v3.7.0.1
EARNINGS PER COMMON SHARE (Tables)
 9 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and nine months ended June 30, 2017 and 2016 is presented below.
Three Months Ended June 30,
2017
 
2016 (1)
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
Basic income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
9,787

 
$
8,873

Weighted average common shares outstanding
9,349,989

 
8,512,043

     Basic income per common share
1.05

 
1.04

 
 
 
 
Diluted income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
9,787

 
$
8,873

Weighted average common shares outstanding
9,349,989

 
8,512,043

     Outstanding options - based upon the two-class method
60,320

 
57,175

Weighted average diluted common shares outstanding
9,410,309

 
8,569,218

     Diluted income per common share
1.04

 
1.04

Nine Months Ended June 30,
2017
 
2016 (1)
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
Basic income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
43,173

 
$
27,214

Average common shares outstanding
9,208,867

 
8,416,724

     Basic income per common share
4.69

 
3.23

 
 
 
 
Diluted income per common share:
 
 
 
     Net income attributable to Meta Financial Group, Inc.
$
43,173

 
$
27,214

Average common shares outstanding
9,208,867

 
8,416,724

     Outstanding options - based upon the two-class method
60,524

 
51,651

Average diluted common shares outstanding
9,269,391

 
8,468,375

     Diluted income per common share
4.66

 
3.21
v3.7.0.1
SECURITIES (Tables)
 9 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at June 30, 2017 and September 30, 2016 are presented below.
Available For Sale
 
 
GROSS

 
GROSS

 
 
At June 30, 2017
AMORTIZED
COST

 
UNREALIZED
GAINS

 
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
100,968

 
1,093

 
(1
)
 
102,060

Non-bank qualified obligations of states and political subdivisions
905,504

 
15,546

 
(3,175
)
 
917,875

Asset-backed securities
117,900

 
2,404

 
—

 
120,304

Mortgage-backed securities
672,554

 
359

 
(6,489
)
 
666,424

Total debt securities
1,796,926

 
19,402

 
(9,665
)
 
1,806,663

Common equities and mutual funds
1,040

 
409

 
(4
)
 
1,445

Total available for sale securities
$
1,797,966

 
$
19,811

 
$
(9,669
)
 
$
1,808,108

At September 30, 2016
AMORTIZED
COST

 
GROSS
UNREALIZED
GAINS

 
GROSS
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Trust preferred securities
$
14,935

 
$
—

 
$
(1,957
)
 
$
12,978

Small business administration securities
78,431

 
2,288

 
—

 
80,719

Non-bank qualified obligations of states and political subdivisions
668,628

 
30,141

 
(97
)
 
698,672

Asset-backed securities
117,487

 
73

 
(745
)
 
116,815

Mortgage-backed securities
555,036

 
4,382

 
(478
)
 
558,940

Total debt securities
1,434,517

 
36,884

 
(3,277
)
 
1,468,124

Common equities and mutual funds
755

 
373

 
(3
)
 
1,125

Total available for sale securities
$
1,435,272

 
$
37,257

 
$
(3,280
)
 
$
1,469,249
Securities Held to Maturity


Held to Maturity
 
 
GROSS

 
GROSS

 
 
At June 30, 2017
AMORTIZED
COST

 
UNREALIZED
GAINS

 
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,509

 
$
176

 
$
(47
)
 
$
19,638

Non-bank qualified obligations of states and political subdivisions
445,220

 
4,774

 
(3,519
)
 
446,475

Mortgage-backed securities
117,399

 
—

 
(1,591
)
 
115,808

Total held to maturity securities
$
582,128

 
$
4,950

 
$
(5,157
)
 
$
581,921


At September 30, 2016
AMORTIZED
COST

 
GROSS
UNREALIZED
GAINS

 
GROSS
UNREALIZED
(LOSSES)

 
FAIR
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
20,626

 
$
355

 
$
(44
)
 
$
20,937

Non-bank qualified obligations of states and political subdivisions
465,469

 
11,744

 
(11
)
 
477,202

Mortgage-backed securities
133,758

 
708

 
(31
)
 
134,435

Total held to maturity securities
$
619,853

 
$
12,807

 
$
(86
)
 
$
632,574
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2017 and September 30, 2016, were as follows:
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At June 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
$
3,955

 
$
(1
)
 
$
—

 
$
—

 
$
3,955

 
$
(1
)
Non-bank qualified obligations of states and political subdivisions
335,226

 
(3,175
)
 
—

 
—

 
335,226

 
(3,175
)
Mortgage-backed securities
506,991

 
(5,760
)
 
31,857

 
(729
)
 
538,848

 
(6,489
)
Total debt securities
846,172

 
(8,936
)
 
31,857

 
(729
)
 
878,029

 
(9,665
)
     Common equities and mutual funds
—

 
—

 
379

 
(4
)
 
379

 
(4
)
Total available for sale securities
$
846,172

 
$
(8,936
)
 
$
32,236

 
$
(733
)
 
$
878,408

 
$
(9,669
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
$
—

 
$
—

 
$
12,978

 
$
(1,957
)
 
$
12,978

 
$
(1,957
)
Non-bank qualified obligations of states and political subdivisions
8,481

 
(58
)
 
2,688

 
(39
)
 
11,169

 
(97
)
Asset-backed securities
89,403

 
(745
)
 
—

 
—

 
89,403

 
(745
)
Mortgage-backed securities
54,065

 
(230
)
 
36,979

 
(248
)
 
91,044

 
(478
)
Total debt securities
151,949

 
(1,033
)
 
52,645

 
(2,244
)
 
204,594

 
(3,277
)
Common equities and mutual funds
—

 
—

 
125

 
(3
)
 
125

 
(3
)
Total available for sale securities
$
151,949

 
$
(1,033
)
 
$
52,770

 
$
(2,247
)
 
$
204,719

 
$
(3,280
)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At June 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
3,690

 
$
(20
)
 
$
1,764

 
$
(27
)
 
$
5,454

 
$
(47
)
Non-bank qualified obligations of states and political subdivisions
208,852

 
(3,495
)
 
1,262

 
(24
)
 
210,114

 
(3,519
)
Mortgage-backed securities
115,808

 
(1,591
)
 
—

 
—

 
115,808

 
(1,591
)
Total held to maturity securities
$
328,350

 
$
(5,106
)
 
$
3,026

 
$
(51
)
 
$
331,376

 
$
(5,157
)
 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2016
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
2,909

 
$
(13
)
 
$
2,256

 
$
(31
)
 
$
5,165

 
$
(44
)
Non-bank qualified obligations of states and political subdivisions
1,294

 
(11
)
 
—

 
—

 
1,294

 
(11
)
Mortgage-backed securities
20,061

 
(31
)
 
—

 
—

 
20,061

 
(31
)
Total held to maturity securities
$
24,264

 
$
(55
)
 
$
2,256

 
$
(31
)
 
$
26,520

 
$
(86
)
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity
The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
AMORTIZED
COST

 
FAIR
VALUE

 
At June 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
27,310

 
28,136

Due after five years through ten years
393,509

 
404,534

Due after ten years
703,553

 
707,569

 
1,124,372

 
1,140,239

Mortgage-backed securities
672,554

 
666,424

Common equities and mutual funds
1,040

 
1,445

Total available for sale securities
$
1,797,966

 
$
1,808,108

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
17,370

 
17,897

Due after five years through ten years
426,034

 
446,771

Due after ten years
436,077

 
444,516

 
879,481

 
909,184

Mortgage-backed securities
555,036

 
558,940

Common equities and mutual funds
755

 
1,125

Total available for sale securities
$
1,435,272

 
$
1,469,249

Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

 
At June 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
341

 
$
340

Due after one year through five years
17,687

 
17,859

Due after five years through ten years
152,051

 
155,002

Due after ten years
294,650

 
292,912

 
464,729

 
466,113

Mortgage-backed securities
117,399

 
115,808

Total held to maturity securities
$
582,128

 
$
581,921

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2016
(Dollars in Thousands)
Due in one year or less
$
472

 
$
471

Due after one year through five years
12,502

 
12,696

Due after five years through ten years
157,944

 
163,806

Due after ten years
315,177

 
321,166

 
486,095

 
498,139

Mortgage-backed securities
133,758

 
134,435

Total held to maturity securities
$
619,853

 
$
632,574
v3.7.0.1
STOCK COMPENSATION (Tables)
 9 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Activity of Options
The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the Company’s 2002 Omnibus Incentive Plan for the nine months ended June 30, 2017:

 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)
 
Aggregate
 Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
Options outstanding, September 30, 2016
125,560

 
$
25.73

 
2.68
 
$
4,379

Granted
—

 
—

 

 


Exercised
(26,352
)
 
32.63

 

 
1,682

Forfeited or expired
(16,252
)
 
24.61

 

 
1,272

Options outstanding, June 30, 2017
82,956

 
$
23.76

 
2.34
 
$
5,412

 
 
 
 
 
 
 
 
Options exercisable, June 30, 2017
82,956

 
$
23.76

 
2.34
 
$
5,412


 
Number
of
Shares

 
Weighted
Average
Fair Value
at Grant

(Dollars in Thousands, Except Share and Per Share Data)
Nonvested (restricted) shares outstanding, September 30, 2016
20,656

 
$
41.37

Granted
306,604

 
87.91

Vested
(22,071
)
 
71.37

Forfeited or expired
(442
)
 
56.25

Nonvested (restricted) shares outstanding, June 30, 2017
304,747

 
$
86.00
v3.7.0.1
SEGMENT INFORMATION (Tables)
 9 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Information of Entity
The following tables present segment data for the Company for the three and nine months ended June 30, 2017 and 2016, respectively.
 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
Interest income
$
3,576

 
$
14,092

 
$
11,193

 
$
28,861

Interest expense
—

 
717

 
3,201

 
3,918

Net interest income
3,576

 
13,375

 
7,992

 
24,943

Provision for loan losses
352

 
888

 
—

 
1,240

Non-interest income
28,934

 
1,190

 
696

 
30,820

Non-interest expense
24,787

 
5,729

 
11,703

 
42,219

Income (loss) before income tax expense (benefit)
7,371

 
7,948

 
(3,015
)
 
12,304

 
 
 
 
 
 
 
 
Total assets
52,276

 
1,229,533

 
2,737,884

 
4,019,693

Total deposits
2,443,332

 
224,886

 
485,001

 
3,153,219


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Nine Months Ended June 30, 2017
 
 
 
 
 
 
 
Interest income
$
9,800

 
$
37,654

 
$
31,700

 
$
79,154

Interest expense
503

 
1,932

 
7,977

 
10,412

Net interest income
9,297

 
35,722

 
23,723

 
68,742

Provision for loan losses
8,566

 
2,166

 
—

 
10,732

Non-interest income
138,420

 
3,648

 
271

 
142,339

Non-interest expense
87,111

 
17,243

 
41,564

 
145,918

Income (loss) before income tax expense (benefit)
52,040

 
19,961

 
(17,570
)
 
54,431

 
 
 
 
 
 
 
 
Total assets
52,276

 
1,229,533

 
2,737,884

 
4,019,693

Total deposits
2,443,332

 
224,886

 
485,001

 
3,153,219


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
Interest income
$
2,579

 
$
9,759

 
$
8,425

 
$
20,763

Interest expense
44

 
344

 
456

 
844

Net interest income
2,535

 
9,415

 
7,969

 
19,919

Provision for loan losses
1

 
2,097

 
—

 
2,098

Non-interest income
22,160

 
1,296

 
351

 
23,807

Non-interest expense
16,231

 
5,347

 
10,049

 
31,627

Income (loss) before income tax expense (benefit)
8,463

 
3,267

 
(1,729
)
 
10,001

 
 
 
 
 
 
 
 
Total assets
48,203

 
860,493

 
2,235,470

 
3,144,166

Total deposits
1,908,961

 
277,995

 
—

 
2,186,956


 
Payments
 
Banking
 
Corporate
Services/Other
 
Total
Nine Months Ended June 30, 2016
 
 
 
 
 
 
 
Interest income
$
7,176

 
$
27,559

 
$
24,932

 
$
59,667

Interest expense
138

 
913

 
1,204

 
2,255

Net interest income
7,038

 
26,646

 
23,728

 
57,412

Provision for loan losses
1,034

 
3,023

 
—

 
4,057

Non-interest income
77,103

 
3,251

 
1,188

 
81,542

Non-interest expense
57,968

 
15,993

 
29,464

 
103,425

Income (loss) before income tax expense (benefit)
25,139

 
10,881

 
(4,548
)
 
31,472

 
 
 
 
 
 
 
 
Total assets
48,203

 
860,493

 
2,235,470

 
3,144,166

Total deposits
1,908,961

 
277,995

 
—

 
2,186,956
v3.7.0.1
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of securities available for sale and held to maturity at June 30, 2017 and September 30, 2016.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
 
Fair Value At June 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
102,060

 
—

 
102,060

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,638

 
—

 
19,638

 
—

Non-bank qualified obligations of states and political subdivisions
917,875

 
—

 
917,875

 
—

 
446,475

 
—

 
446,475

 
—

Asset-backed securities
120,304

 
—

 
120,304

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
666,424

 
—

 
666,424

 
—

 
115,808

 
—

 
115,808

 
—

Total debt securities
1,806,663

 
—

 
1,806,663

 
—

 
581,921

 
—

 
581,921

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,808,108

 
$
1,445

 
$
1,806,663

 
$
—

 
$
581,921

 
$
—

 
$
581,921

 
$
—

 
Fair Value At September 30, 2016
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust preferred securities
$
12,978

 
$
—

 
$
12,978

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Small business administration securities
80,719

 
—

 
80,719

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
20,937

 
—

 
20,937

 
—

Non-bank qualified obligations of states and political subdivisions
698,672

 
—

 
698,672

 
—

 
477,202

 
—

 
477,202

 
—

Asset-backed securities
116,815

 
—

 
116,815

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
558,940

 
—

 
558,940

 
—

 
134,435

 
—

 
134,435

 
—

Total debt securities
1,468,124

 
—

 
1,468,124

 
—

 
632,574

 
—

 
632,574

 
—

Common equities and mutual funds
1,125

 
1,125

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,469,249

 
$
1,125

 
$
1,468,124

 
$
—

 
$
632,574

 
$
—

 
$
632,574

 
$
—
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2017 and September 30, 2016.
 
 
Fair Value At June 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
     Total Impaired Loans
$
—

 
$
—

 
$
—

 
$
—

Foreclosed Assets, net
$
364

 
$
—

 
$
—

 
$
364

Total
$
364

 
$
—

 
$
—

 
$
364

 
Fair Value At September 30, 2016
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans, net
 
 
 
 
 
 
 
  1-4 family residential mortgage loans
$
68

 
$
—

 
$
—

 
$
68

     Total Impaired Loans
68

 
—

 
—

 
68

Foreclosed Assets, net
76

 
 
 
 
 
76

Total
$
144

 
$
—

 
$
—

 
$
144
Quantitative Information about Level 3 Fair Value Measurements
 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
June 30, 2017
 
Fair Value at
September 30, 2016
 
Valuation
Technique
 
Unobservable Input
 
Range of Inputs
Impaired Loans, net
$
—

 
68

 
Market approach
 
Appraised values (1)
 
4.00 - 10.00%
Foreclosed Assets, net
$
364

 
76

 
Market approach
 
Appraised values (1)
 
4.00 - 10.00%
(1) 
The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimating selling costs in a range of 4% to 10%.
Carrying Amount and Estimated Fair Value of Financial Instruments
The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2017 and September 30, 2016.
 
 
June 30, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
65,630

 
$
65,630

 
$
65,630

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,808,108

 
1,808,108

 
1,445

 
1,806,663

 
—

Securities held to maturity
582,128

 
581,921

 
—

 
581,921

 
—

Total securities
2,390,236

 
2,390,029

 
1,445

 
2,388,584

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
190,731

 
188,813

 
—

 
—

 
188,813

Commercial and multi-family real estate loans
493,859

 
484,155

 
—

 
—

 
484,155

Agricultural real estate loans
62,521

 
62,275

 
—

 
—

 
62,275

Consumer loans
172,151

 
173,416

 
—

 
—

 
173,416

Commercial operating loans
39,076

 
38,965

 
—

 
—

 
38,965

Agricultural operating loans
35,471

 
35,395

 
—

 
—

 
35,395

Premium finance loans
231,587

 
231,573

 
—

 
—

 
231,573

Total loans receivable
1,225,396

 
1,214,592

 
—

 
—

 
1,214,592

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
16,323

 
16,323

 
—

 
16,323

 
—

Accrued interest receivable
21,831

 
21,831

 
21,831

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Noninterest bearing demand deposits
2,481,673

 
2,481,673

 
2,481,673

 
—

 
—

Interest bearing demand deposits, savings, and money markets
142,929

 
142,929

 
142,929

 
—

 
—

Certificates of deposit
83,760

 
83,190

 
—

 
83,190

 
—

Wholesale non-maturing deposits
23,505

 
23,505

 
23,505

 
—

 
—

Wholesale certificates of deposit
421,352

 
420,680

 
—

 
420,680

 
—

Total deposits
3,153,219

 
3,151,977

 
2,648,107

 
503,870

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
7,000

 
7,807

 
—

 
7,807

 
—

Federal funds purchased
275,000

 
275,000

 
275,000

 
—

 
—

Securities sold under agreements to repurchase
2,100

 
2,100

 
—

 
2,100

 
—

Capital lease
1,958

 
1,958

 
—

 
1,958

 
—

Trust preferred securities
10,310

 
10,446

 
—

 
10,446

 
—

Subordinated debentures
73,312

 
75,750

 
—

 
75,750

 
—

Accrued interest payable
2,463

 
2,463

 
2,463

 
—

 
—

 
September 30, 2016
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
773,830

 
$
773,830

 
$
773,830

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,469,249

 
1,469,249

 
1,125

 
1,468,124

 
—

Securities held to maturity
619,853

 
632,574

 
—

 
632,574

 
—

Total securities
2,089,102

 
2,101,823

 
1,125

 
2,100,698

 
—

 
 
 
 
 
 
 
 
 
 
Loans receivable:
 

 
 

 
 

 
 

 
 

One to four family residential mortgage loans
162,298

 
163,886

 
—

 
—

 
163,886

Commercial and multi-family real estate loans
422,932

 
422,307

 
—

 
—

 
422,307

Agricultural real estate loans
63,612

 
63,868

 
—

 
—

 
63,868

Consumer loans
37,094

 
36,738

 
—

 
—

 
36,738

Commercial operating loans
31,271

 
31,108

 
—

 
—

 
31,108

Agricultural operating loans
37,083

 
36,897

 
—

 
—

 
36,897

Premium finance loans
171,604

 
172,000

 
—

 
—

 
172,000

Total loans receivable
925,894

 
926,803

 
—

 
—

 
926,803

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
47,512

 
47,512

 
—

 
47,512

 
—

Accrued interest receivable
17,199

 
17,199

 
17,199

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Noninterest bearing demand deposits
2,167,522

 
2,167,522

 
2,167,522

 
—

 
—

Interest bearing demand deposits, savings, and money markets
136,568

 
136,568

 
136,568

 
—

 
—

Certificates of deposit
125,992

 
125,772

 
—

 
125,772

 
—

Total deposits
2,430,082

 
2,429,862

 
2,304,090

 
125,772

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
107,000

 
108,168

 
—

 
108,168

 
—

Federal funds purchased
992,000

 
992,000

 
992,000

 
—

 
—

Securities sold under agreements to repurchase
3,039

 
3,039

 
—

 
3,039

 
—

Capital lease
2,018

 
2,018

 
—

 
2,018

 
—

Trust preferred securities
10,310

 
10,437

 
—

 
10,437

 
—

Subordinated debentures
73,211

 
77,250

 
—

 
77,250

 
—

Accrued interest payable
875

 
875

 
875

 
—

 
—
v3.7.0.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 9 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill
The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2017 and 2016 were as follows:
 
 
2017
 
2016
 
(Dollars in Thousands)
Goodwill
 
 
 
Balance as of September 30,
$
36,928

 
$
36,928

Acquisitions during the period
61,795

 
—

Write-offs during the period
—

 
—

Balance as of June 30,
$
98,723

 
$
36,928


 
Trademark(1)
 
Non-Compete(2)
 
Customer
Relationships(3)
 
All Others(4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,922

 
46,372

Amortization during the period
(442
)
 
(371
)
 
(9,084
)
 
(598
)
 
(10,495
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of June 30, 2017
$
10,207

 
$
1,936

 
$
43,276

 
$
9,379

 
$
64,798

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
10,990

 
$
2,480

 
$
57,810

 
$
10,478

 
$
81,758

Accumulated amortization
$
(783
)
 
$
(544
)
 
$
(14,534
)
 
$
(1,099
)
 
$
(16,960
)
Balance as of June 30, 2017
$
10,207

 
$
1,936

 
$
43,276

 
$
9,379

 
$
64,798

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

 
Trademark(1)
 
Non-Compete(2)
 
Customer
Relationships(3)
 
All Others(4)
 
Total
Intangibles
 
Balance as of September 30, 2015
$
5,439

 
$
227

 
$
24,811

 
$
3,100

 
$
33,577

Acquisitions during the period
—

 
—

 
—

 
155

 
155

Amortization during the period
(216
)
 
(75
)
 
(3,191
)
 
(162
)
 
(3,644
)
Write-offs during the period
—

 
—

 
—

 
—

 
—

Balance as of June 30, 2016
$
5,223

 
$
152

 
$
21,620

 
$
3,093

 
$
30,088

 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
5,490

 
$
300

 
$
26,040

 
$
3,539

 
$
35,369

Accumulated amortization
$
(267
)
 
$
(148
)
 
$
(4,420
)
 
$
(446
)
 
$
(5,281
)
Balance as of June 30, 2016
$
5,223

 
$
152

 
$
21,620

 
$
3,093

 
$
30,088


(1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.
Schedule of Future Amortization Expense
The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining period of fiscal 2017 and subsequent fiscal years is as follows:
 
(Dollars in Thousands)
Remaining in 2017
$
1,828

2018
11,855

2019
9,073

2020
7,292

2021
6,338

2022
5,030

Thereafter
23,382

Total anticipated intangible amortization
$
64,798
v3.7.0.1
BASIS OF PRESENTATION (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Jun. 30, 2016
 [1]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Estimated forfeitures when recognizing compensation expense $ 500    
Additional compensation related to the adoption of ASU 2016-09   $ 8,405 $ 678
Accounting Standards Update 2016-09 [Member]      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Additional compensation related to the adoption of ASU 2016-09 $ 300    
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
ACQUISITIONS (Details)
$ in Thousands
 9 Months Ended
Dec. 14, 2016
USD ($)
shares
Nov. 01, 2016
USD ($)
franchise
shares
Jun. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Business Acquisition [Line Items]          
Pre-tax transaction related expenses     $ 800    
Fair value of consideration paid          
Contingent consideration - equity     24,142   $ 0 [1]
Fair value of assets acquired          
Goodwill resulting from acquisition     98,723 $ 36,928 $ 36,928
EPS [Member]          
Business Acquisition [Line Items]          
Number of Electronic Return Originators | franchise   10,000      
Pre-tax transaction related expenses   $ 500      
Fair value of consideration paid          
Cash   $ 21,877      
Number of shares issued | shares   369,179      
Stock issued   $ 26,507      
Total consideration paid   48,384      
Fair value of assets acquired          
Intangible assets   17,930      
Other assets   79      
Total assets   18,009      
Fair value of net assets acquired   18,009      
Goodwill resulting from acquisition   $ 30,375      
SCS [Member]          
Business Acquisition [Line Items]          
Contingent consideration arrangements, measured business gross profit maximum $ 17,500   $ 17,500    
Performance target earnout payments (in shares) | shares 264,431        
Performance target earnout payments, percent 100.00%        
Fair value of consideration paid          
Cash $ 7,548        
Number of shares issued | shares 113,328        
Stock issued $ 10,789        
Paid consideration 18,337        
Contingent consideration - cash 17,252        
Contingent consideration - equity 24,142        
Contingent consideration payable 41,394        
Total consideration paid 59,731        
Fair value of assets acquired          
Intangible assets 28,310        
Other assets 2        
Total assets 28,312        
Fair value of net assets acquired 28,312        
Goodwill resulting from acquisition $ 31,419        
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
CREDIT DISCLSOURES - Summary of Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable $ 1,225,396 $ 925,894 $ 861,123
Allowance for loan losses (14,968) (5,635)  
Net Deferred Loan Origination Fees (1,037) (789)  
Total Loans Receivable, Net 1,209,391 919,470  
1-4 Family Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 190,731 162,298 150,461
Commercial and Multi-Family Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 493,859 422,932 386,798
Agricultural Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 62,521 63,612 64,130
Consumer [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 172,151 37,094 36,986
Commercial Operating [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 39,076 31,271 40,971
Agricultural Operating [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 35,471 37,083 40,435
Premium Finance [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable $ 231,587 $ 171,604 $ 141,342
v3.7.0.1
CREDIT DISCLSOURES - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Allowance for Credit Losses [Roll Forward]              
Beginning balance $ 14,602 $ 7,431 $ 5,635 $ 6,255      
Provision (recovery) for loan losses 1,240 2,098 10,732 4,057      
Charge offs (894) (3,453) (1,502) (4,270)      
Recoveries 20 44 103 78      
Ending balance 14,968 6,120 14,968 6,120      
Ending balance: individually evaluated for impairment         $ 0   $ 31
Ending balance: collectively evaluated for impairment         14,968   6,089
Total 14,602 7,431 5,635 6,255 14,968 $ 5,635 6,120
Loans:              
Ending balance: individually evaluated for impairment         1,434   1,207
Ending balance: collectively evaluated for impairment         1,223,962   859,916
Total Loans Receivable         1,225,396 925,894 861,123
1-4 Family Real Estate [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 296 327 654 278      
Provision (recovery) for loan losses 510 66 152 115      
Charge offs 0 0 0 0      
Recoveries 0 0 0 0      
Ending balance 806 393 806 393      
Ending balance: individually evaluated for impairment         0   31
Ending balance: collectively evaluated for impairment         806   362
Total 296 327 654 278 806 654 393
Loans:              
Ending balance: individually evaluated for impairment         133   210
Ending balance: collectively evaluated for impairment         190,598   150,251
Total Loans Receivable         190,731 162,298 150,461
Commercial and Multi-Family Real Estate [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 1,742 1,694 2,198 1,187      
Provision (recovery) for loan losses 386 428 (70) 1,225      
Charge offs 0 (95) 0 (385)      
Recoveries 0 0 0 0      
Ending balance 2,128 2,027 2,128 2,027      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         2,128   2,027
Total 1,742 1,694 2,198 1,187 2,128 2,198 2,027
Loans:              
Ending balance: individually evaluated for impairment         1,301   994
Ending balance: collectively evaluated for impairment         492,558   385,804
Total Loans Receivable         493,859 422,932 386,798
Agricultural Real Estate [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 1,524 154 142 163      
Provision (recovery) for loan losses (80) 49 1,302 40      
Charge offs 0 0 0 0      
Recoveries 0 0 0 0      
Ending balance 1,444 203 1,444 203      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         1,444   203
Total 1,524 154 142 163 1,444 142 203
Loans:              
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         62,521   64,130
Total Loans Receivable         62,521 63,612 64,130
Consumer [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 7,706 1,059 51 20      
Provision (recovery) for loan losses 142 (243) 7,773 796      
Charge offs (1) (1) (1) (1)      
Recoveries 0 1 24 1      
Ending balance 7,847 816 7,847 816      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         7,847   816
Total 7,706 1,059 51 20 7,847 51 816
Loans:              
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         172,151   36,986
Total Loans Receivable         172,151 37,094 36,986
Commercial Operating [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 767 45 117 28      
Provision (recovery) for loan losses 249 281 1,244 298      
Charge offs (799) 0 (1,149) 0      
Recoveries 5 0 10 0      
Ending balance 222 326 222 326      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         222   326
Total 767 45 117 28 222 117 326
Loans:              
Ending balance: individually evaluated for impairment         0   3
Ending balance: collectively evaluated for impairment         39,076   40,968
Total Loans Receivable         39,076 31,271 40,971
Agricultural Operating [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 1,349 3,327 1,332 3,537      
Provision (recovery) for loan losses (44) 1,436 (39) 1,226      
Charge offs 0 (3,253) 0 (3,253)      
Recoveries 0 0 12 0      
Ending balance 1,305 1,510 1,305 1,510      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         1,305   1,510
Total 1,349 3,327 1,332 3,537 1,305 1,332 1,510
Loans:              
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         35,471   40,435
Total Loans Receivable         35,471 37,083 40,435
Premium Finance [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 597 477 588 293      
Provision (recovery) for loan losses 187 95 412 772      
Charge offs (94) (104) (352) (631)      
Recoveries 15 43 57 77      
Ending balance 705 511 705 511      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         705   511
Total 597 477 588 293 705 588 511
Loans:              
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         231,587   141,342
Total Loans Receivable         231,587 171,604 141,342
Unallocated [Member]              
Allowance for Credit Losses [Roll Forward]              
Beginning balance 621 348 553 749      
Provision (recovery) for loan losses (110) (14) (42) (415)      
Charge offs 0 0 0 0      
Recoveries 0 0 0 0      
Ending balance 511 334 511 334      
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         511   334
Total $ 621 $ 348 $ 553 $ 749 511 $ 553 334
Loans:              
Ending balance: individually evaluated for impairment         0   0
Ending balance: collectively evaluated for impairment         0   0
Total Loans Receivable         $ 0   $ 0
v3.7.0.1
CREDIT DISCLSOURES - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 1,225,396 $ 925,894 $ 861,123
Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 1,168,336 876,194  
Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 4,444 8,015  
Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 3,540 32,710  
Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 49,076 8,975  
Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
1-4 Family Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 190,731 162,298 150,461
1-4 Family Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 189,645 161,255  
1-4 Family Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 532 200  
1-4 Family Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 398 666  
1-4 Family Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 156 177  
1-4 Family Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial and Multi-Family Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 493,859 422,932 386,798
Commercial and Multi-Family Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 488,279 421,577  
Commercial and Multi-Family Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 3,871 72  
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 203 962  
Commercial and Multi-Family Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 1,506 321  
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Agricultural Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 62,521 63,612 64,130
Agricultural Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 27,580 34,421  
Agricultural Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 2,934  
Agricultural Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 2,939 25,675  
Agricultural Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 32,002 582  
Agricultural Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 172,151 37,094 36,986
Consumer [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 172,151 37,094  
Consumer [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial Operating [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 39,076 31,271 40,971
Commercial Operating [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 39,076 30,574  
Commercial Operating [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 184  
Commercial Operating [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial Operating [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 513  
Commercial Operating [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Agricultural Operating [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 35,471 37,083 40,435
Agricultural Operating [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 20,018 19,669  
Agricultural Operating [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 41 4,625  
Agricultural Operating [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 5,407  
Agricultural Operating [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 15,412 7,382  
Agricultural Operating [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 231,587 171,604 $ 141,342
Premium Finance [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 231,587 171,604  
Premium Finance [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 0 $ 0  
v3.7.0.1
CREDIT DISCLSOURES - Past Due Loans (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Jun. 30, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due $ 52,797 $ 3,226  
Current 1,172,371 922,585  
Non-accrual loans 228 83  
Total Loans Receivable 1,225,396 925,894 $ 861,123
30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 2,360 1,549  
60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 4,052 659  
Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 46,385 1,018  
1-4 Family Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 430 30  
Current 190,242 162,185  
Non-accrual loans 59 83  
Total Loans Receivable 190,731 162,298 150,461
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 430 0  
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 30  
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Commercial and Multi-Family Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 549 0  
Current 493,141 422,932  
Non-accrual loans 169 0  
Total Loans Receivable 493,859 422,932 386,798
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 549 0  
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Agricultural Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 39,489 0  
Current 23,032 63,612  
Non-accrual loans 0 0  
Total Loans Receivable 62,521 63,612 64,130
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 1,164 0  
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 2,117 0  
Agricultural Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 36,208 0  
Consumer [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 10,608 53  
Current 161,543 37,041  
Non-accrual loans 0 0  
Total Loans Receivable 172,151 37,094 36,986
Consumer [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 666 0  
Consumer [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 570 0  
Consumer [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 9,372 53  
Commercial Operating [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 505  
Current 39,076 30,766  
Non-accrual loans 0 0  
Total Loans Receivable 39,076 31,271 40,971
Commercial Operating [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 151  
Commercial Operating [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 354  
Commercial Operating [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Agricultural Operating [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 97 0  
Current 35,374 37,083  
Non-accrual loans 0 0  
Total Loans Receivable 35,471 37,083 40,435
Agricultural Operating [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Agricultural Operating [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 97 0  
Agricultural Operating [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 0 0  
Premium Finance [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 1,624 2,638  
Current 229,963 168,966  
Non-accrual loans 0 0  
Total Loans Receivable 231,587 171,604 $ 141,342
Premium Finance [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 100 1,398  
Premium Finance [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due 719 275  
Premium Finance [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total past due $ 805 $ 965  
v3.7.0.1
CREDIT DISCLSOURES - Impaired Loans (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Sep. 30, 2016
Loans without a specific valuation allowance          
Recorded Balance $ 1,434   $ 1,434   $ 517
Unpaid Principal Balance 1,434   1,434   517
Loans with a specific valuation allowance          
Recorded Balance         78
Unpaid Principal Balance         78
Specific Allowance         10
Average Recorded Investment 2,710 $ 3,490 1,783 $ 5,247  
1-4 Family Real Estate [Member]          
Loans without a specific valuation allowance          
Recorded Balance 133   133   84
Unpaid Principal Balance 133   133   84
Loans with a specific valuation allowance          
Recorded Balance         78
Unpaid Principal Balance         78
Specific Allowance         10
Average Recorded Investment 210 146 197 127  
Commercial and Multi-Family Real Estate [Member]          
Loans without a specific valuation allowance          
Recorded Balance 1,301   1,301   433
Unpaid Principal Balance 1,301   1,301   $ 433
Loans with a specific valuation allowance          
Average Recorded Investment 1,196 1,059 765 1,221  
Agricultural Real Estate [Member]          
Loans with a specific valuation allowance          
Average Recorded Investment 388 0 194 0  
Consumer Loans [Member]          
Loans with a specific valuation allowance          
Average Recorded Investment 0 0 0 0  
Commercial Operating [Member]          
Loans with a specific valuation allowance          
Average Recorded Investment 201 5 269 8  
Agricultural Operating [Member]          
Loans with a specific valuation allowance          
Average Recorded Investment 715 2,280 358 3,891  
Premium Finance [Member]          
Loans with a specific valuation allowance          
Average Recorded Investment $ 0 $ 0 $ 0 $ 0  
v3.7.0.1
CREDIT DISCLSOURES - Narrative and Additional Information (Details)
 9 Months Ended
Jun. 30, 2017
USD ($)
loan
Sep. 30, 2016
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of specific allowance for losses 100.00%  
Maturity period of fixed rate loans 30 years  
Annual cap of ARM loans 2.00%  
Lifetime cap of ARM loans 6.00%  
Number of Well Collateralized Loans in Collection | loan 2  
Increase finance receivables $ 49,600,000  
Total past due $ 52,797,000 $ 3,226,000
1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of loans receivable 30 years  
Total past due $ 430,000 30,000
Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loan to value ratio 80.00%  
Maturity period of fixed rate loans 20 years  
Total past due $ 549,000 0
Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due $ 0 505,000
Agricultural Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of loans receivable 1 year  
Total past due $ 97,000 0
Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due $ 39,489,000 0
Consumer Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of fixed rate loans 5 years  
Total past due $ 10,608,000 53,000
Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Period of delay or shortfall in payments after which a loan is evaluated for impairment 210 days  
Typical period of delinquency 210 days  
Total past due $ 1,624,000 2,638,000
Refund Advance Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Typical period of delinquency 180 days  
ERO Advance Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Typical period of delinquency 120 days  
Non-Premium Finance Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Period of delay or shortfall in payments after which a loan is evaluated for impairment 90 days  
Typical period of delinquency 90 days  
Maximum [Member] | 1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loan to value ratio 100.00%  
Exposure of the entity expressed in loan to value ratio 80.00%  
Maximum [Member] | Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of loans receivable 1 year  
Percentage value for securing the loan 80.00%  
Maximum [Member] | Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of loans receivable 1 year  
Maximum [Member] | Agricultural Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of fixed rate loans 7 years  
Maximum [Member] | Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of fixed rate loans 10 years  
Period of amortization, loans 25 years  
Percentage value for securing the loan 75.00%  
Maximum [Member] | Consumer Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage value for securing the loan 90.00%  
Maximum [Member] | Automobile Loan [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of loans receivable 60 months  
Percentage value for securing the loan 80.00%  
Maximum [Member] | Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of down payment 25.00%  
Period of finance 10 months  
Period of conversion of collateral into cash 210 days  
Minimum [Member] | Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Maturity period of fixed rate loans 5 years  
Period of amortization, loans 20 years  
Minimum [Member] | Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Percentage of down payment 20.00%  
Period of finance 9 months  
Period of conversion of collateral into cash 60 days  
Typical period of delinquency 90 days  
Financing Receivables, Equal to Greater than 210 Days Past Due [Member] | Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due $ 0  
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Increase finance receivables 45,400,000  
Total past due $ 46,385,000 1,018,000
Financing Receivable, Percent Past Due 94.00%  
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | 1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due $ 0 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due 0 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due 0 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Agricultural Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due 0 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Agricultural Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due 36,208,000 0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due 9,372,000 53,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Premium Finance [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total past due $ 805,000 $ 965,000
v3.7.0.1
CREDIT DISCLSOURES - Troubled Debt Restructured Loans (Details) - loan
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Loans and Leases Receivable Disclosure [Abstract]        
Loans modified in TDR 0 0 0 0
Loans modified in TDR, subsequent default 0 0 0 0
v3.7.0.1
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Mar. 31, 2017
Sep. 30, 2016
Mar. 31, 2016
Sep. 30, 2015
Receivables [Abstract]                
Allowance for loan losses $ (14,968)   $ (14,968)     $ (5,635)    
Financing Receivable, Allowance for Credit Losses 14,968 $ 6,120 14,968 $ 6,120 $ 14,602 $ 5,635 $ 7,431 $ 6,255
Increase in allowance from tax season loans     8,600          
Provision for loan losses $ 1,240 $ 2,098 10,732 4,057 [1]        
Net charge offs (recoveries)     $ 1,400 $ 4,200        
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Common Share, Basic and Diluted [Abstract]        
Net income attributable to Meta Financial Group, Inc. $ 9,787 $ 8,873 $ 43,173 $ 27,214 [1]
Weighted average common shares outstanding (in shares) 9,349,989 8,512,043 9,208,867 8,416,724
Basic (in dollars per share) $ 1.05 $ 1.04 $ 4.69 $ 3.23
Outstanding options - based upon the two-class method (in shares) 60,320 57,175 60,524 51,651
Weighted average common and dilutive potential common shares outstanding (in shares) 9,410,309 8,569,218 9,269,391 8,468,375
Diluted (in dollars per share) $ 1.04 $ 1.04 $ 4.66 $ 3.21
Accounting Standards Update 2015-06 [Member]        
Earnings Per Common Share, Basic and Diluted [Abstract]        
Basic (in dollars per share)   1.04   3.23
Diluted (in dollars per share)   1.04   3.21
As previously reported [Member] | Accounting Standards Update 2015-06 [Member]        
Earnings Per Common Share, Basic and Diluted [Abstract]        
Basic (in dollars per share)   $ 1.05   3.24
Diluted (in dollars per share)       $ 3.22
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
SECURITIES - Available for Sale (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Available-for-sale debt securities [Abstract]    
Fair value $ 666,424 $ 558,940
Available-for-sale equity securities [Abstract]    
Fair value 1,141,684 910,309
Available-for-sale securities [Abstract]    
Amortized cost 1,797,966 1,435,272
Gross unrealized gains 19,811 37,257
Gross unrealized (losses) (9,669) (3,280)
Total available for sale securities 1,808,108 1,469,249
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 846,172 151,949
LESS THAN 12 MONTHS, Unrealized (Losses) (8,936) (1,033)
OVER 12 MONTHS, Fair Value 32,236 52,770
OVER 12 MONTHS, Unrealized (Losses) (733) (2,247)
TOTAL, Fair Value 878,408 204,719
TOTAL, Unrealized (Losses) (9,669) (3,280)
AMORTIZED COST    
Due in one year or less 0 0
Due after one year through five years 27,310 17,370
Due after five years through ten years 393,509 426,034
Due after ten years 703,553 436,077
Total 1,124,372 879,481
Mortgage-backed securities 672,554 555,036
Common equities and mutual funds 1,040 755
Amortized cost 1,797,966 1,435,272
FAIR VALUE    
Due in one year or less 0 0
Due after one year through five years 28,136 17,897
Due after five years through ten years 404,534 446,771
Due after ten years 707,569 444,516
Total 1,140,239 909,184
Mortgage-backed securities 666,424 558,940
Common equities and mutual funds 1,445 1,125
Total available for sale securities 1,808,108 1,469,249
Trust Preferred Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost   14,935
Gross unrealized gains   0
Gross unrealized (losses)   (1,957)
Fair value   12,978
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   0
LESS THAN 12 MONTHS, Unrealized (Losses)   0
OVER 12 MONTHS, Fair Value   12,978
OVER 12 MONTHS, Unrealized (Losses)   (1,957)
TOTAL, Fair Value   12,978
TOTAL, Unrealized (Losses)   (1,957)
Small Business Administration Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 100,968 78,431
Gross unrealized gains 1,093 2,288
Gross unrealized (losses) (1) 0
Fair value 102,060 80,719
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 3,955  
LESS THAN 12 MONTHS, Unrealized (Losses) (1)  
OVER 12 MONTHS, Fair Value 0  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Fair Value 3,955  
TOTAL, Unrealized (Losses) (1)  
Non-bank Qualified Obligations of States and Political Subdivisions [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 905,504 668,628
Gross unrealized gains 15,546 30,141
Gross unrealized (losses) (3,175) (97)
Fair value 917,875 698,672
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 335,226 8,481
LESS THAN 12 MONTHS, Unrealized (Losses) (3,175) (58)
OVER 12 MONTHS, Fair Value 0 2,688
OVER 12 MONTHS, Unrealized (Losses) 0 (39)
TOTAL, Fair Value 335,226 11,169
TOTAL, Unrealized (Losses) (3,175) (97)
Asset-backed Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 117,900 117,487
Gross unrealized gains 2,404 73
Gross unrealized (losses) 0 (745)
Fair value 120,304 116,815
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   89,403
LESS THAN 12 MONTHS, Unrealized (Losses)   (745)
OVER 12 MONTHS, Fair Value   0
OVER 12 MONTHS, Unrealized (Losses)   0
TOTAL, Fair Value   89,403
TOTAL, Unrealized (Losses)   (745)
Mortgage-backed Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 672,554 555,036
Gross unrealized gains 359 4,382
Gross unrealized (losses) (6,489) (478)
Fair value 666,424 558,940
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 506,991 54,065
LESS THAN 12 MONTHS, Unrealized (Losses) (5,760) (230)
OVER 12 MONTHS, Fair Value 31,857 36,979
OVER 12 MONTHS, Unrealized (Losses) (729) (248)
TOTAL, Fair Value 538,848 91,044
TOTAL, Unrealized (Losses) (6,489) (478)
Debt Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 1,796,926 1,434,517
Gross unrealized gains 19,402 36,884
Gross unrealized (losses) (9,665) (3,277)
Fair value 1,806,663 1,468,124
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 846,172 151,949
LESS THAN 12 MONTHS, Unrealized (Losses) (8,936) (1,033)
OVER 12 MONTHS, Fair Value 31,857 52,645
OVER 12 MONTHS, Unrealized (Losses) (729) (2,244)
TOTAL, Fair Value 878,029 204,594
TOTAL, Unrealized (Losses) (9,665) (3,277)
Common Equities and Mutual Funds [Member]    
Available-for-sale equity securities [Abstract]    
Amortized cost 1,040 755
Gross unrealized gains 409 373
Gross unrealized (losses) (4) (3)
Fair value 1,445 1,125
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 379 125
OVER 12 MONTHS, Unrealized (Losses) (4) (3)
TOTAL, Fair Value 379 125
TOTAL, Unrealized (Losses) $ (4) $ (3)
v3.7.0.1
SECURITIES - Held to Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Held-to-maturity Securities [Abstract]    
Amortized cost $ 582,128 $ 619,853
Gross unrealized gains 4,950 12,807
Gross unrealized (losses) (5,157) (86)
Securities held to maturity 581,921 632,574
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 328,350 24,264
LESS THAN 12 MONTHS, Unrealized (Losses) (5,106) (55)
OVER 12 MONTHS, Fair Value 3,026 2,256
OVER 12 MONTHS, Unrealized (Losses) (51) (31)
TOTAL, Fair Value 331,376 26,520
TOTAL, Unrealized (Losses) (5,157) (86)
AMORTIZED COST    
Due in one year or less 341 472
Due after one year through five years 17,687 12,502
Due after five years through ten years 152,051 157,944
Due after ten years 294,650 315,177
Total 464,729 486,095
Mortgage-backed securities 117,399 133,758
Amortized cost 582,128 619,853
FAIR VALUE    
Due in one year or less 340 471
Due after one year through five years 17,859 12,696
Due after five years through ten years 155,002 163,806
Due after ten years 292,912 321,166
Total 466,113 498,139
Mortgage-backed securities 115,808 134,435
Total held to maturity securities 581,921 632,574
Non-bank Qualified Obligations of States and Political Subdivisions [Member]    
Held-to-maturity Securities [Abstract]    
Amortized cost 445,220 465,469
Gross unrealized gains 4,774 11,744
Gross unrealized (losses) (3,519) (11)
Securities held to maturity 446,475 477,202
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 208,852 1,294
LESS THAN 12 MONTHS, Unrealized (Losses) (3,495) (11)
OVER 12 MONTHS, Fair Value 1,262 0
OVER 12 MONTHS, Unrealized (Losses) (24) 0
TOTAL, Fair Value 210,114 1,294
TOTAL, Unrealized (Losses) (3,519) (11)
AMORTIZED COST    
Amortized cost 445,220 465,469
FAIR VALUE    
Total held to maturity securities 446,475 477,202
Mortgage-backed Securities [Member]    
Held-to-maturity Securities [Abstract]    
Amortized cost 117,399 133,758
Gross unrealized gains 0 708
Gross unrealized (losses) (1,591) (31)
Securities held to maturity 115,808 134,435
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 115,808 20,061
LESS THAN 12 MONTHS, Unrealized (Losses) (1,591) (31)
OVER 12 MONTHS, Fair Value 0 0
OVER 12 MONTHS, Unrealized (Losses) 0 0
TOTAL, Fair Value 115,808 20,061
TOTAL, Unrealized (Losses) (1,591) (31)
AMORTIZED COST    
Amortized cost 117,399 133,758
FAIR VALUE    
Total held to maturity securities 115,808 134,435
Obligations of States and Political Subdivisions [Member]    
Held-to-maturity Securities [Abstract]    
Amortized cost 19,509 20,626
Gross unrealized gains 176 355
Gross unrealized (losses) (47) (44)
Securities held to maturity 19,638 20,937
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 3,690 2,909
LESS THAN 12 MONTHS, Unrealized (Losses) (20) (13)
OVER 12 MONTHS, Fair Value 1,764 2,256
OVER 12 MONTHS, Unrealized (Losses) (27) (31)
TOTAL, Fair Value 5,454 5,165
TOTAL, Unrealized (Losses) (47) (44)
AMORTIZED COST    
Amortized cost 19,509 20,626
FAIR VALUE    
Total held to maturity securities $ 19,638 $ 20,937
v3.7.0.1
COMMITMENTS AND CONTINGENCIES (Details)
 3 Months Ended
Jan. 07, 2016
USD ($)
Dec. 31, 2014
USD ($)
Jun. 30, 2017
USD ($)
Oct. 14, 2016
USD ($)
Sep. 30, 2016
USD ($)
company
Loss Contingencies [Line Items]          
Number of federal district courts | company         3
Number of identified limited liability companies | company         3
Damages awarded $ 6,100,000        
Unfunded loan commitments     $ 263,500,000   $ 182,900,000
Inter National Bank [Member]          
Loss Contingencies [Line Items]          
Amount of shortfall in depository account   $ 10,500,000      
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member]          
Loss Contingencies [Line Items]          
Estimate of possible loss       $ 1,579,398  
v3.7.0.1
STOCK COMPENSATION (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Jun. 30, 2017
USD ($)
Officers
$ / shares
shares
Jun. 30, 2017
USD ($)
$ / shares
shares
Sep. 30, 2016
USD ($)
$ / shares
shares
Number of Shares      
Options outstanding, beginning of period (in shares) | shares   125,560  
Granted (in shares) | shares   0  
Exercised (in shares) | shares   (26,352)  
Forfeited or expired (in shares) | shares   (16,252)  
Options outstanding, end of period (in shares) | shares 82,956 82,956 125,560
Options exercisable, end of period (in shares) | shares 82,956 82,956  
Weighted Average Exercise Price      
Options outstanding, beginning of period (in dollars per share) | $ / shares   $ 25.73  
Granted (in dollars per share) | $ / shares   0.00  
Exercised (in dollars per share) | $ / shares   32.63  
Forfeited or expired (in dollars per share) | $ / shares   24.61  
Options outstanding, end of period (in dollars per share) | $ / shares $ 23.76 23.76 $ 25.73
Options exercisable, end of period (in dollars per share) | $ / shares $ 23.76 $ 23.76  
Weighted Average Remaining Contractual Term      
Options outstanding   2 years 4 months 2 days 2 years 8 months 5 days
Options exercisable   2 years 4 months 2 days  
Aggregate Intrinsic Value      
Options outstanding, beginning of period | $   $ 4,379  
Granted | $    
Exercised | $   1,682  
Forfeited or expired | $   1,272  
Options outstanding, end of period | $ $ 5,412 5,412 $ 4,379
Options exercisable, end of period | $ $ 5,412 $ 5,412  
Number of Shares      
Nonvested shares outstanding, beginning of period (in shares) | shares   20,656  
Granted (in shares) | shares   306,604  
Vested (in shares) | shares   (22,071)  
Forfeited or expired (in shares) | shares   (442)  
Nonvested shares outstanding, end of period (in shares) | shares 304,747 304,747 20,656
Weighted Average Fair Value at Grant      
Nonvested shares outstanding, beginning of period (in dollars per share) | $ / shares   $ 41.37  
Granted (in dollars per share) | $ / shares   87.91  
Vested (in dollars per share) | $ / shares   71.37  
Forfeited or expired (in dollars per share) | $ / shares   56.25  
Nonvested shares outstanding, end of period (in dollars per share) | $ / shares $ 86.00 $ 86.00 $ 41.37
Number of Company's Named Executive Officers with stock awards | Officers 3    
Executive award vesting period 8 years    
Stock based compensation expense not yet recognized in income | $ $ 19,000 $ 19,000  
Weighted average remaining period for unrecognized stock based compensation   4 years 26 days  
v3.7.0.1
SEGMENT INFORMATION (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Sep. 30, 2016
Segment data [Abstract]          
Total interest and dividend income $ 28,861 $ 20,763 $ 79,154 $ 59,667  
Interest expense 3,918 844 10,412 2,255  
Net interest income (expense) 24,943 19,919 68,742 57,412  
Provision for loan losses 1,240 2,098 10,732 4,057 [1]  
Non-interest income 30,820 23,807 142,339 81,542  
Non-interest expense 42,219 31,627 145,918 103,425  
Income before income tax expense 12,304 10,001 54,431 31,472  
Total assets 4,019,693 3,144,166 4,019,693 3,144,166 $ 4,006,419
Total deposits 3,153,219 2,186,956 3,153,219 2,186,956 $ 2,430,082
Payments [Member]          
Segment data [Abstract]          
Total interest and dividend income 3,576 2,579 9,800 7,176  
Interest expense 0 44 503 138  
Net interest income (expense) 3,576 2,535 9,297 7,038  
Provision for loan losses 352 1 8,566 1,034  
Non-interest income 28,934 22,160 138,420 77,103  
Non-interest expense 24,787 16,231 87,111 57,968  
Income before income tax expense 7,371 8,463 52,040 25,139  
Total assets 52,276 48,203 52,276 48,203  
Total deposits 2,443,332 1,908,961 2,443,332 1,908,961  
Banking [Member]          
Segment data [Abstract]          
Total interest and dividend income 14,092 9,759 37,654 27,559  
Interest expense 717 344 1,932 913  
Net interest income (expense) 13,375 9,415 35,722 26,646  
Provision for loan losses 888 2,097 2,166 3,023  
Non-interest income 1,190 1,296 3,648 3,251  
Non-interest expense 5,729 5,347 17,243 15,993  
Income before income tax expense 7,948 3,267 19,961 10,881  
Total assets 1,229,533 860,493 1,229,533 860,493  
Total deposits 224,886 277,995 224,886 277,995  
Corporate and Other [Member]          
Segment data [Abstract]          
Total interest and dividend income 11,193 8,425 31,700 24,932  
Interest expense 3,201 456 7,977 1,204  
Net interest income (expense) 7,992 7,969 23,723 23,728  
Provision for loan losses 0 0 0 0  
Non-interest income 696 351 271 1,188  
Non-interest expense 11,703 10,049 41,564 29,464  
Income before income tax expense (3,015) (1,729) (17,570) (4,548)  
Total assets 2,737,884 2,235,470 2,737,884 2,235,470  
Total deposits $ 485,001 $ 0 $ 485,001 $ 0  
[1] See Note 1. Basis of Presentation for further discussion on the current presentation.
v3.7.0.1
NEW ACCOUNTING PRONOUNCEMENTS (Details)
$ in Millions
 3 Months Ended
Jun. 30, 2017
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Estimated forfeitures when recognizing compensation expense $ 0.5
v3.7.0.1
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Available-for-sale Securities [Abstract]    
Total debt securities $ 666,424 $ 558,940
Total available for sale securities 1,808,108 1,469,249
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 581,921 632,574
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 364 76
Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 1,445 1,125
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 1,806,663 1,468,124
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 581,921 632,574
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 0 0
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 1,214,592 926,803
Level 3 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 188,813 163,886
Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 484,155 422,307
Level 3 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 35,395 36,897
Level 3 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 173,416 36,738
Level 3 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 38,965 31,108
Recurring [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred securities   12,978
Small business administration securities 102,060 80,719
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 917,875 698,672
Asset-baked securities 120,304 116,815
Mortgage-backed securities 666,424 558,940
Total debt securities 1,806,663 1,468,124
Common equities and mutual funds 1,445 1,125
Total available for sale securities 1,808,108 1,469,249
Held-to-maturity Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 19,638 20,937
Non-bank qualified obligations of states and political subdivisions 446,475 477,202
Asset-backed securities 0 0
Mortgage-backed securities 115,808 134,435
Total debt securities 581,921 632,574
Common equities and mutual funds 0 0
Total held to maturity securities 581,921 632,574
Recurring [Member] | Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-baked securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 1,445 1,125
Total available for sale securities 1,445 1,125
Held-to-maturity Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total held to maturity securities 0 0
Recurring [Member] | Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred securities   12,978
Small business administration securities 102,060 80,719
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 917,875 698,672
Asset-baked securities 120,304 116,815
Mortgage-backed securities 666,424 558,940
Total debt securities 1,806,663 1,468,124
Common equities and mutual funds 0 0
Total available for sale securities 1,806,663 1,468,124
Held-to-maturity Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 19,638 20,937
Non-bank qualified obligations of states and political subdivisions 446,475 477,202
Asset-backed securities 0 0
Mortgage-backed securities 115,808 134,435
Total debt securities 581,921 632,574
Common equities and mutual funds 0 0
Total held to maturity securities 581,921 632,574
Recurring [Member] | Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-baked securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total available for sale securities 0 0
Held-to-maturity Securities [Abstract]    
Trust preferred securities   0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total held to maturity securities 0 0
Nonrecurring [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 364 144
Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0  
Nonrecurring [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   68
Nonrecurring [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   68
Nonrecurring [Member] | Foreclosed Assets [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 364 76
Nonrecurring [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0  
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   0
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   0
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0  
Nonrecurring [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0  
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   0
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   0
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0  
Nonrecurring [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 364 144
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0  
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   68
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value   68
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets $ 364 $ 76
v3.7.0.1
FAIR VALUE MEASUREMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 9 Months Ended
Jun. 30, 2017
Sep. 30, 2016
Minimum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 4.00%  
Maximum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 10.00%  
Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 1,214,592 $ 926,803
Impaired Loans, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value 0 68
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 364 $ 76
v3.7.0.1
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Sep. 30, 2016
Financial assets [Abstract]    
Securities available for sale $ 1,808,108 $ 1,469,249
Securities held to maturity 581,921 632,574
Financial liabilities [Abstract]    
Long-term debt 92,514 92,460
Level 1 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 65,630 773,830
Securities available for sale 1,445 1,125
Securities held to maturity 0 0
Total securities 1,445 1,125
Loans receivable [Abstract]    
Total loans receivable 0 0
Federal Home Loan Bank stock 0 0
Accrued interest receivable 21,831 17,199
Financial liabilities [Abstract]    
Noninterest bearing demand deposits 2,481,673 2,167,522
Interest bearing demand deposits, savings, and money markets 142,929 136,568
Certificates of deposit 0 0
Deposits, Wholesale, Non-Maturing 23,505  
Deposits, Wholesale, Certificates of Deposit 0  
Total deposits 2,648,107 2,304,090
Advances from Federal Home Loan Bank 0 0
Federal Funds Purchased 275,000  
Federal fund purchased   992,000
Securities sold under agreements to repurchase 0 0
Long-term debt 0 0
Trust Preferred Securities 0 0
Subordinated debentures 0 0
Accrued interest payable 2,463 875
Level 2 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 0 0
Securities available for sale 1,806,663 1,468,124
Securities held to maturity 581,921 632,574
Total securities 2,388,584 2,100,698
Loans receivable [Abstract]    
Total loans receivable 0 0
Federal Home Loan Bank stock 16,323 47,512
Accrued interest receivable 0 0
Financial liabilities [Abstract]    
Noninterest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposit 83,190 125,772
Deposits, Wholesale, Non-Maturing 0  
Deposits, Wholesale, Certificates of Deposit 420,680  
Total deposits 503,870 125,772
Advances from Federal Home Loan Bank 7,807 108,168
Federal Funds Purchased 0  
Federal fund purchased   0
Securities sold under agreements to repurchase 2,100 3,039
Long-term debt 1,958 2,018
Trust Preferred Securities 10,446 10,437
Subordinated debentures 75,750 77,250
Accrued interest payable 0 0
Level 3 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 0 0
Securities available for sale 0 0
Securities held to maturity 0 0
Total securities 0 0
Loans receivable [Abstract]    
Total loans receivable 1,214,592 926,803
Federal Home Loan Bank stock 0 0
Accrued interest receivable 0 0
Financial liabilities [Abstract]    
Noninterest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposit 0 0
Deposits, Wholesale, Non-Maturing 0  
Deposits, Wholesale, Certificates of Deposit 0  
Total deposits 0 0
Advances from Federal Home Loan Bank 0 0
Federal Funds Purchased 0  
Federal fund purchased   0
Securities sold under agreements to repurchase 0 0
Long-term debt 0 0
Trust Preferred Securities 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Carrying Amount [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 65,630 773,830
Securities available for sale 1,808,108 1,469,249
Securities held to maturity 582,128 619,853
Total securities 2,390,236 2,089,102
Loans receivable [Abstract]    
Total loans receivable 1,225,396 925,894
Federal Home Loan Bank stock 16,323 47,512
Accrued interest receivable 21,831 17,199
Financial liabilities [Abstract]    
Noninterest bearing demand deposits 2,481,673 2,167,522
Interest bearing demand deposits, savings, and money markets 142,929 136,568
Certificates of deposit 83,760 125,992
Deposits, Wholesale, Non-Maturing 23,505  
Deposits, Wholesale, Certificates of Deposit 421,352  
Total deposits 3,153,219 2,430,082
Advances from Federal Home Loan Bank 7,000 107,000
Federal Funds Purchased 275,000  
Federal fund purchased   992,000
Securities sold under agreements to repurchase 2,100 3,039
Long-term debt 1,958 2,018
Trust Preferred Securities 10,310 10,310
Subordinated debentures 73,312 73,211
Accrued interest payable 2,463 875
Estimated Fair Value [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 65,630 773,830
Securities available for sale 1,808,108 1,469,249
Securities held to maturity 581,921 632,574
Total securities 2,390,029 2,101,823
Loans receivable [Abstract]    
Total loans receivable 1,214,592 926,803
Federal Home Loan Bank stock 16,323 47,512
Accrued interest receivable 21,831 17,199
Financial liabilities [Abstract]    
Noninterest bearing demand deposits 2,481,673 2,167,522
Interest bearing demand deposits, savings, and money markets 142,929 136,568
Certificates of deposit 83,190 125,772
Deposits, Wholesale, Non-Maturing 23,505  
Deposits, Wholesale, Certificates of Deposit 420,680  
Total deposits 3,151,977 2,429,862
Advances from Federal Home Loan Bank 7,807 108,168
Federal Funds Purchased 275,000  
Federal fund purchased   992,000
Securities sold under agreements to repurchase 2,100 3,039
Long-term debt 1,958 2,018
Trust Preferred Securities 10,446 10,437
Subordinated debentures 75,750 77,250
Accrued interest payable 2,463 875
1-4 Family Real Estate [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
1-4 Family Real Estate [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
1-4 Family Real Estate [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 188,813 163,886
1-4 Family Real Estate [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 190,731 162,298
1-4 Family Real Estate [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 188,813 163,886
Commercial and Multi-family Real Estate Loans [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Commercial and Multi-family Real Estate Loans [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Commercial and Multi-family Real Estate Loans [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 484,155 422,307
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 493,859 422,932
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 484,155 422,307
Agricultural Real Estate [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Agricultural Real Estate [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Agricultural Real Estate [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 62,275 63,868
Agricultural Real Estate [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 62,521 63,612
Agricultural Real Estate [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 62,275 63,868
Consumer Loans [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Consumer Loans [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Consumer Loans [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 173,416 36,738
Consumer Loans [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 172,151 37,094
Consumer Loans [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 173,416 36,738
Commercial Operating Loans [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Commercial Operating Loans [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Commercial Operating Loans [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 38,965 31,108
Commercial Operating Loans [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 39,076 31,271
Commercial Operating Loans [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 38,965 31,108
Agricultural Operating [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Agricultural Operating [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Agricultural Operating [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 35,395 36,897
Agricultural Operating [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 35,471 37,083
Agricultural Operating [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable 35,395 36,897
Premium Finance Loans [Member] | Level 1 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Premium Finance Loans [Member] | Level 2 [Member]    
Loans receivable [Abstract]    
Total loans receivable 0 0
Premium Finance Loans [Member] | Level 3 [Member]    
Loans receivable [Abstract]    
Total loans receivable 231,573 172,000
Premium Finance Loans [Member] | Carrying Amount [Member]    
Loans receivable [Abstract]    
Total loans receivable 231,587 171,604
Premium Finance Loans [Member] | Estimated Fair Value [Member]    
Loans receivable [Abstract]    
Total loans receivable $ 231,573 $ 172,000
v3.7.0.1
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Dec. 14, 2016
Nov. 01, 2016
Jun. 30, 2016
Sep. 08, 2015
Dec. 02, 2014
Finite-Lived Intangible Assets [Line Items]                    
Goodwill $ 98,723 $ 36,928 $ 36,928 $ 36,928 $ 98,723     $ 36,928    
Goodwill [Roll Forward]                    
Balance, beginning of period     36,928              
Acquisitions during the period     61,795 0            
Write-offs during the period     0 0            
Balance, end of period 98,723 36,928 98,723 36,928            
Intangible Assets [Roll Forward]                    
Balance, beginning of period     28,921 33,577            
Acquisitions during the period     46,372 155            
Amortization of Intangible Assets     (10,495) (3,644)            
Write-offs during the period     0 0            
Balance, end of period 64,798 30,088 64,798 30,088            
Amortizable intangible assets [Abstract]                    
Amount Upon Acquisition         81,758     35,369    
Amortization during the period         (16,960)     (5,281)    
Total anticipated intangible amortization 64,798 30,088 28,921 33,577 64,798     30,088    
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]                    
Remaining in 2017         1,828          
2018         11,855          
2019         9,073          
2020         7,292          
2021         6,338          
2022         5,030          
Thereafter         23,382          
Total anticipated intangible amortization 64,798 30,088 28,921 33,577 64,798     30,088    
Impairment of intangible assets 0 0 0 0            
AFS/IBEX Financial Services Inc [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill                   $ 11,600
Refund Advantage Financial Services Inc [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill           $ 31,400 $ 30,400   $ 25,400  
Trademark [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period     5,149 5,439            
Acquisitions during the period     5,500 0            
Amortization of Intangible Assets     (442) (216)            
Write-offs during the period     0 0            
Balance, end of period 10,207 5,223 10,207 5,223            
Amortizable intangible assets [Abstract]                    
Amount Upon Acquisition         10,990     5,490    
Amortization during the period         (783)     (267)    
Total anticipated intangible amortization 10,207 5,223 5,149 5,439 10,207     5,223    
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]                    
Total anticipated intangible amortization $ 10,207 5,223 5,149 5,439 10,207     5,223    
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 5 years                  
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 15 years                  
Non-Compete [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period     127 227            
Acquisitions during the period     2,180 0            
Amortization of Intangible Assets     (371) (75)            
Write-offs during the period     0 0            
Balance, end of period $ 1,936 152 1,936 152            
Amortizable intangible assets [Abstract]                    
Amount Upon Acquisition         2,480     300    
Amortization during the period         (544)     (148)    
Total anticipated intangible amortization 1,936 152 127 227 1,936     152    
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]                    
Total anticipated intangible amortization $ 1,936 152 127 227 1,936     152    
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 3 years                  
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 5 years                  
Customer Relationships [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period     20,590 24,811            
Acquisitions during the period     31,770 0            
Amortization of Intangible Assets     (9,084) (3,191)            
Write-offs during the period     0 0            
Balance, end of period $ 43,276 21,620 43,276 21,620            
Amortizable intangible assets [Abstract]                    
Amount Upon Acquisition         57,810     26,040    
Amortization during the period         (14,534)     (4,420)    
Total anticipated intangible amortization 43,276 21,620 20,590 24,811 43,276     21,620    
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]                    
Total anticipated intangible amortization $ 43,276 21,620 20,590 24,811 43,276     21,620    
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 10 years                  
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 30 years                  
Other [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period     3,055 3,100            
Acquisitions during the period     6,922 155            
Amortization of Intangible Assets     (598) (162)            
Write-offs during the period     0 0            
Balance, end of period $ 9,379 3,093 9,379 3,093            
Amortizable intangible assets [Abstract]                    
Amount Upon Acquisition         10,478     3,539    
Amortization during the period         (1,099)     (446)    
Total anticipated intangible amortization 9,379 3,093 3,055 3,100 9,379     3,093    
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]                    
Total anticipated intangible amortization $ 9,379 $ 3,093 $ 3,055 $ 3,100 $ 9,379     $ 3,093    
Other [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 3 years                  
Other [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Useful life 20 years                  
v3.7.0.1
SUBSEQUENT EVENTS (Details) - USD ($)
 3 Months Ended 7 Months Ended 9 Months Ended
Sep. 30, 2017
Jul. 27, 2017
Jun. 30, 2017
Jun. 30, 2016
Aug. 02, 2017
Subsequent Event [Line Items]          
Write-offs expected in fourth quarter     $ 0 $ 0  
Scenario, Forecast [Member]          
Subsequent Event [Line Items]          
Write-offs expected in fourth quarter $ (10,700,000)        
H&R Block [Member] | Subsequent Event [Member]          
Subsequent Event [Line Items]          
Earnings from interest-free refund advance loans   $ 12,000,000      
Jackson Hewitt Tax Service [Member] | Subsequent Event [Member]          
Subsequent Event [Line Items]          
Interest-free refund advance loans         $ 750,000,000
Increase in interest-free refund advance loans of prior year         $ 300,000,000